Dogecoin (DOGE), the popular and largest crypto meme coin by market cap, is poised for a price drop as sentiment begins to change. In recent days, the overall cryptocurrency market has been quite confusing, raising concerns about whether the price will rise or fall.
However, at the moment it is unpredictable in terms of price predictions, although the DOGE daily chart has formed a bearish price action.
Dogecoin (DOGE) Technical Analysis and Upcoming Level
According to CoinPedia’s technical analysis, DOGE is currently at a crucial support level at $0.383, after breaking an ascending triangular price action pattern. With the recent ups and downs and significant volatility, DOGE has successfully retested the breakdown level and is currently receiving support.
Based on the recent price action and historical momentum, if DOGE fails to hold this support level and close a daily candle below the $0.38 level, there is a strong possibility that it could fall by 15% to close the coming days to reach the $0.31 level.
However, DOGE’s Relative Strength Index (RSI) currently stands at 50, which is far from overbought territory, indicating a potential price reversal in the coming days.
83.68% DOGE Traders have long positions
Besides the bearish technical analysis, it seems that traders are the ones holding DOGE at the $0.383 support level as reported by the on-chain analytics firm Mint glass. Data from the Binance DOGEUSDT Long/Short ratio currently stands at 5.13, indicating strong bullish market sentiment among traders.
Moreover, data shows that currently 83.68% of the top Binance traders have long positions, while 16.32% have short positions.
When these on-chain metrics are combined with the technical analysis, it appears that bulls are currently trying to keep the price above the crucial support level and prevent further price declines.
DOGE Current price momentum
At the time of writing, DOGE is trading around $0.39 and has experienced a price drop of over 2.65% in the past 24 hours. Over the same period, trading volume fell 26%, indicating lower participation from traders and investors as sentiment turns bearish.