Dogecoin faces potential sell-offs as on-chain analysis reveals a critical resistance barrier, posing a risk to its short-term recovery prospects.
Points
- DOGE posted a 13.67% downturn over the past week, now trading at $0.11.
- On-chain analysis indicates a potential sell wall around the $0.11 level.
- Dogecoin’s Market Value to Realized Value （MVRV） ratio suggests further selling pressure.
- Potential price support levels are identified between $0.09 and $0.10.
Dogecoin （DOGE） has posted losses for seven consecutive days, with its price falling to $0.11. This decline raises concerns about the short-term potential of the largest meme coin by market cap, especially given the on-chain analysis revealing a potential sell wall at the current price level.
According to blockchain analytics platform IntoTheBlock, the In/Out of Money Around Price （IOMAP） metric shows a significant resistance barrier close to the $0.11 level. The IOMAP classifies addresses based on their profit status and helps spot key support and resistance areas. The data indicates that 40,200 addresses hold 2.74 billion DOGE, currently valued at around $300 million, at the $0.11 level. This substantial resistance could prevent further price recovery.
Dogecoin’s 30-day Market Value to Realized Value （MVRV） ratio is currently -7.26%, suggesting that DOGE holders are experiencing unrealized losses. Historically, DOGE’s price tends to recover when the MVRV ratio falls between 9.53% and 21.88%. However, the current negative value indicates potential selling pressure, as investors might be inclined to sell to mitigate further losses.
An assessment of Dogecoin’s daily chart shows that the decline began on July 27, after a rebound from $0.13. This decline represents a 17.55% decrease, and the Exponential Moving Average （EMA） analysis further highlights the bearish trend. The 50 EMA （yellow） is currently above the 20 EMA （blue）, indicating ongoing bearish momentum.
If selling pressure increases, Dogecoin’s price could drop to the next support levels between $0.09 and $0.10. However, a potential golden cross, where the 20 EMA rises above the 50 EMA, could signal a bullish reversal. Should this occur, DOGE’s price might jump back to $0.12 or $0.13.
解説
- Dogecoin’s current price movement and on-chain analysis suggest significant resistance around the $0.11 level, posing a challenge for short-term recovery.
- The IOMAP and MVRV ratios provide valuable insights into potential selling pressure and support levels, helping investors gauge market sentiment.
- The EMA analysis indicates ongoing bearish momentum, with potential for further declines if the resistance at $0.11 holds.
- Investors should monitor key support levels and be cautious of potential sell-offs, while also being aware of possible bullish signals like a golden cross.
- Understanding these technical indicators and market dynamics can help investors make more informed decisions and navigate the volatility of Dogecoin’s market.