Analyze the recent decline in Dogecoin’s price, the factors contributing to this trend, and the potential future movements and support levels.
Points
- Dogecoin’s price dropped 12% in three days, now at $0.12.
- Sell orders for DOGE outnumber buy orders, creating a significant sell-wall.
- The $0.10 support level is at risk if bearish trends continue.
Dogecoin’s recent performance has been notably disappointing. Over the past week, DOGE has been on a downward trajectory, starting from a peak of $0.143 on July 21. This decline is observed despite significant increases in other leading cryptocurrencies like Bitcoin （BTC）, Ethereum （ETH）, and Bitcoin Cash （BCH）.
Sell Orders Overwhelm Buy Orders
The selling pressure on Dogecoin has increased in the past few hours due to a decrease in the price of the digital asset. According to the Exchange Order Books data provided by IntoTheBlock, DOGE is in a bearish trend. Traders have placed sell orders for approximately 730 million DOGE at an average price of $0.12, creating a sell-wall valued at over $92 million.
Shifting Social Media Focus
Recent analytics from Santiment reveal a notable shift in social media focus from memecoins like Dogecoin to leading cryptocurrencies such as Bitcoin, Ethereum, and Solana. The “Social Dominance” metric, which tracks the proportion of discussions related to the top 100 cryptocurrencies, shows a decrease in attention towards Dogecoin and similar assets.
Analysts Identify Potential Bullish Patterns
Despite the current bearish trend, some analysts are identifying potential bullish patterns for DOGE. The historical performance of Dogecoin shows that it often consolidates in a descending triangle, sees a 140% to 230% rally, and retraces by 56% to 60% before entering a bull run.
I haven’t sold one single $DOGE. I’ve just been buying! #Dogecoin is playing the same pattern we’ve seen before. It consolidates in a descending triangle, sees a 140% to 230% rally, and retraces by 56% to 60% before entering a bull run.
https://twitter.com/ali_charts/status/1816353688899969196
If the bearish trend continues, Dogecoin’s price could drop below the critical support level of $0.10. However, if the market sentiment shifts positively and bullish patterns emerge, DOGE could experience a significant rebound. Investors should monitor market conditions closely and be prepared for potential volatility.
解説
- The significant sell-wall for DOGE indicates a strong bearish trend.
- Shifting social media focus from memecoins to leading cryptocurrencies reflects changing market sentiment.
- Historical bullish patterns for Dogecoin suggest potential for future rebounds.
- Investors should remain cautious and watch for key support levels and market signals to anticipate future price movements.