- Dogecoin Could Be Poised for Another 23.4% Price Drop
- The downtrend was noticeably strong on the daily time frame
Dogecoin [DOGE] recently saw a spike in social sentiment, and social media engagement is also on the rise. This could cause the price action to turn bullish. However, at the time of writing, the sellers’ dominance was too great.
The memecoin retested its July low at $0.09136 as support, with technical analysis showing further losses could be likely.
Fibonacci extension levels mark the next target
Source: DOGE/USDT on TradingView
The daily chart showed Dogecoin falling towards the $0.09136 support level again over the past two weeks. During this time, the downtrend regained its momentum. The RSI, which briefly raised its head above the neutral 50, was forced into bearish territory.
The DMI indicator showed that the -DI (red) and the ADX were both above 20 – indicating a strong downtrend in progress. Trading volume was low during the attempted surge, underscoring the lack of conviction in August.
However, the weekly and daily structures began to align. And the Fibonacci extension level at $0.07162 could be the next target for DOGE if $0.09136 gives way.
Indications from alternating grid currents and spot markets
AMBCrypto also looked at grid power data for the past three months. In total, last month’s 35.15 million DOGE outflows were worth $3.211 million in accumulation. In the grand scheme of things, this value isn’t much for a market cap of $13.7 billion.
And yet this came at a time of intense selling pressure, and every little bit of accumulation helps the bullish argument.
While some market participants withdrew their tokens from the exchange’s portfolio, others continued to sell eagerly. Furthermore, spot CVD appeared to be in a continued downward trend over the past two weeks as prices steadily declined.
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The Open Interest remained between $340 million and $360 million. The most recent price drop on Friday, August 6 saw Open Interest rise – a sign of short selling and bearish sentiment.
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
