Dogecoin’s price decline over the past week raises concerns about its recovery, with significant resistance at the $0.11 level indicating potential selling pressure.
Points
- Dogecoin has faced a 13.67% downturn over the past seven days.
- The In/Out of Money Around Price （IOMAP） shows a potential sell wall around $0.11.
- 40,200 addresses hold 2.74 billion coins, valued at approximately $300 million.
- The Market Value to Realized Value （MVRV） ratio indicates potential unrealized losses.
- DOGE’s price may continue to decline if selling pressure persists.
Dogecoin （DOGE） has posted losses for the seventh consecutive day, with its price falling to $0.11. This sustained decline raises concerns about the short-term potential of the largest meme coin by market cap. On-chain analysis shows that these concerns may be valid, largely due to potential selling pressure around the current price.
According to the In/Out of Money Around Price （IOMAP） data from IntoTheBlock, there is a significant resistance barrier at the $0.11 level. The IOMAP classifies addresses as either making money, breaking even, or losing money to identify support and resistance areas. The data reveals that 40,200 addresses hold 2.74 billion coins, currently valued at around $300 million. This cluster of addresses creates a strong resistance level that could prevent a price rebound.
Dogecoin’s price has faced a 13.67% downturn over the past seven days. As of the latest data, DOGE is trading at approximately $0.11. The Market Value to Realized Value （MVRV） ratio further supports the bearish outlook. The MVRV ratio gives insights into the level of unrealized profits or losses. High values indicate high unrealized gains, suggesting a possible increase in willingness to sell. Low values indicate unrealized losses, indicating a potential resolve to hold. Currently, Dogecoin’s 30-day MVRV ratio is -7.26%.
Historically, Dogecoin’s price tends to recover when the MVRV ratio is between 9.53% and 21.88%. If the pattern holds, DOGE holders may face another round of unrealized losses before a recovery. An assessment of the daily chart shows that the decline began on July 27, after the price had initially rebounded from $0.13. This decline represents a 17.55% decrease over the mentioned timeframe.
解説
- On-Chain Analysis: The IOMAP data provides valuable insights into potential resistance levels for Dogecoin. Understanding these resistance barriers can help investors make informed decisions about entry and exit points.
- Market Sentiment: The current market sentiment for Dogecoin is bearish, with significant selling pressure around the $0.11 level. This sentiment is reflected in the sustained price decline and high resistance levels.
- Technical Indicators: The MVRV ratio is a crucial indicator of market sentiment and potential price movements. Dogecoin’s current MVRV ratio suggests that holders are facing unrealized losses, which could lead to further price declines if selling pressure persists.
- Strategic Considerations: Investors should consider the broader market context and historical trends when making decisions about Dogecoin. Monitoring on-chain data and technical indicators can provide valuable insights into potential price movements and help investors navigate the market’s volatility.
- Future Outlook: While the short-term outlook for Dogecoin is challenging, understanding the underlying factors driving market sentiment and price movements can help investors position themselves for potential future gains. Patience and strategic planning are essential for navigating the volatile cryptocurrency market.