- Dogecoin has a bearish market structure on the higher time frames.
- Liquidity below $0.1 will likely drag prices before a reversal can occur.
Dogecoin [DOGE] is up 20% since it bottomed at $0.0913 on Friday, July 5. The majority of crypto tokens witnessed a relief after the recent carnage, but not all of them can sustain the move.
The price forecast for Dogecoin shows that this company too could struggle to maintain momentum. Instead, prices would likely consolidate or move lower as buyers remain weak.
The bulls are hanging on by a thread at the $0.1 level
Source: DOGE/USDT on TradingView
Dogecoin has fallen below its March lows, wiping out all the gains from the second half of that month. To the south, the region of $0.0775-$0.082 is the next demand zone.
It was where prices consolidated for two months, before the wild rally in February and March.
The daily RSI was below the neutral 50, indicating that the trend was still firmly bearish. The CMF stood at +0.03, highlighting capital inflows into the market. However, it is likely that the buyers are not strong enough to reverse the recent losses.
The Dogecoin price forecast remains bearish, and this bias would change if the price can rise above $0.13 and defend it as support.
Even more reasons why Dogecoin price prediction is disheartening for investors
AMBCrypto’s six-month look back analysis of the liquidation heatmap showed three distinct liquidity bands from $0.1-$0.112.
Last week they were all wiped out, and the memecoin bounced back to test this region as resistance again.
Realistic or not, here is DOGE’s market cap in BTC terms
The $0.0745-$0.079 region was the next closest liquidity zone. Given the trend of the market and proximity, it is likely to attract DOGE.
Once it is taken out, prices could reverse bullishly and target the $0.18 area.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer.