- Dogecoin fell below a crucial support level.
- Market sentiment surrounding the memecoin remains bearish.
Dogecoin [DOGE] Investors have been struggling for several days as the weekly chart and daily chart remained red. Things could get even worse if the memecoin falls below a critical support level.
Does this indicate a further price drop in the coming days?
Dogecoin’s latest problem
CoinMarketCaps facts revealed that the price of the world’s largest memecoin has fallen by more than 11% in the past seven days. In the last 24 hours alone, the value of the coin has fallen by more than 4%.
At the time of writing, DOGE was trading at $0.119 with a market cap of over $17.2 billion. The memecoin was testing crucial support at the time of writing.
Source: TradingView
AMBCrypto planned to look at DOGE’s statistics to see if the memecoin can test its support. Our analysis of IntoTheBlock data found that 72% of DOGE investors made a profit.
However, interstors’ confidence in the currency decreased.
According to our analysis, the average balance of DOGE investors fell to $2.6k in recent days, indicating that investors expected the memecoin’s price to fall further.
Source: IntoTheBlock
What you can expect from DOGE
AMBCrypto then checked the memecoin’s on-chain data to better understand what to expect from them.
According to our analysis of Santiment’s data, Dogecoin’s MVRV ratio has fallen sharply over the past week, which can be inferred as a bearish signal.
Additionally, the Daily Active Address declined after peaking on June 20, reflecting a decline in memecoin usage.
The memecoin’s weighted sentiment also remained in the negative zone, indicating that bearish sentiment surrounding the coin was dominant in the market.
Source: Santiment
AMBCrypto then planned to look at DOGE’s daily chart to see what indicators suggested about the memecoin’s coming days.
According to our analysis, the Chaikin Money Flow (CMF) registered a downward trend, indicating a further decline in prices.
However, the Relative Strength Index (RSI) was about to enter the oversold zone, which could increase buying pressure and boost the memecoin’s price. The MACD also showed the possibility of a bullish crossover.
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This meant that there was a chance of a quick trend reversal.
If a trend reversal occurs, DOGE would first touch $0.127. A breakout above that level could see the price reach $0.148 in the coming weeks.
Source: TradingView