Dogecoin price struggles to hold $0.1 support amid declining derivatives activity, raising the risk of a deeper price correction to $0.08.
Dogecoin price is having difficulty detangling from bearish entrapments despite firmly holding above crucial support. Should sellers have their way, the largest meme coin will be staring at a potential 20% decline before a stronger rebound emerges.
Dogecoin Price Market Movers: 47.4B DOGE In Loss, Falling OI and Volume, Rapid Network Growth
- Dogecoin price recovery from the $0.08 low has stalled below the $0.1 resistance level. According to IntoTheBlock, almost 80% of holders, approximately 47.8 billion DOGE, face unrealized losses compared to only 17.8%, roughly 10.62 billion DOGE, currently in profit. Investors should exercise caution when buying DOGE, as market uncertainty persists and recovery prospects remain uncertain.
- The performance of Dogecoin price in the derivatives market echoes the need for traders to be vigilant, especially with several data sets persistently trending downwards, including the volume metric, the open interest (OI), the options volume, and the options open interest.
- As per Coinglass data, a 0.7% drop in the OI to $466 million may appear too small, but with the volume sliding 30% to $714 million, it signals a potential cooling-off period in the market. It can also be interpreted as a consolidation phase following a period of heightened volatility or a shift in investor sentiment.
- On the bright side, the Dogecoin network activity ticked up from Monday, August 12. Active addresses, which reflect the number of addresses interacting with DOGE on-chain, increased from zero to 67.51k. This was accompanied by a noticeable rise in the number of new addresses from zero to approximately 12k. Increasing new and active addresses suggests growing adoption and potential DOGE price appreciation.
Dogecoin Price Analysis: DOGE Poised For Another Crash
Dogecoin price holds support at $0.1, but its position below all three bull market indicators, including the 20-day, 50-day, and 200-day EMA, put bulls at a great disadvantage. Several attempts have been made to breach $0.11 resistance in the last two weeks but sellers have always come at the the top.
The contracting Bollinger bands point to a possible breakout on either side of the narrow range between $0.1 and $0.11. Keeping the potential pressure at $0.11 with 32.62 billion DOGE in volume, a bearish outcome is highly likely.
IntoTheBlock’s IOMAP shows that it would be a lot easier for Dogecoin price to fall to $0.08 than skyrocket above $0.11 unless both the technical and fundamental structures change positively.
Insights from Dogecoin price forecast show that it may not be all grim if bulls manage to protect their lifeline at $0.1. A break above the 20-day and the 50-day will increase the chances of a Bollinger bands breakout above $0.11. Moreover, every time Dogecoin price takes down the 200-day EMA, a larger leg up follows, suggesting a potential move to $0.14 and later toward $0.2.
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