Short-term price target for Dogecoin – could it be $0.12 now?

  • At press time, Dogecoin appears poised to break above key support lines
  • On-chain indicators highlight significant bearish sentiment across the market

Dogecoin [DOGE]At press time, the stock was trading near the lower line of its horizontal channel, which it has been within since April 13.

Horizontal channels form when asset prices consolidate within a certain range over a period of time. The upper line of this channel forms resistance and the lower line forms support. As for DOGE, the bears appear to have formed resistance at $0.17, while the bulls have defended the price at $0.12 – forming long-term support.

DOGE 1-day chart

Source: TradingView

DOGE bears take charge

If the bulls fail to hold this support, the price of DOGE could plummet to new lows on the chart. This means the market has been inundated with selling activity.

An evaluation of some on-chain metrics hints at the possibility of this happening. For example, since March 31, memecoin’s weighted sentiment has been primarily negative.

Dogecoin Weighted Sentiment

Source: Santiment

This indicator measures the overall market sentiment towards an asset. When it returns to a negative value, the asset market is flooded with negative sentiment and its price is expected to fall.

At press time, DOGE's weighted sentiment remained below zero at -0.17. If meme coins continue to suffer from depressed sentiment, it will put downward pressure on their prices. This could cause it to fall below the support level.

In addition, overall market demand for DOGE has also declined significantly. According to statistics, in the past 30 days alone, the average daily number of addresses completing at least one transaction involving the popular memecoin has dropped by 13% saint.

Dogecoin daily active addresses

Source: Santiment

To prevent further losses on their investments, DOGE whales have gradually reduced their investments in memecoin over the past month. According to data from IntoTheBlock, the number of daily large transactions on DOGE has dropped significantly over the past 30 days.

Think about it – the number of DOGE transactions worth between $100,000 and $1 million has dropped 46% in the past month. Likewise, larger transaction volume between $1 million and $10 million fell 39.1% during the same period.

Number of Dogecoin transactions (by size)

Source: IntoTheBlock

DOGE futures traders remain firm

However, despite Dogecoin’s poor price performance, its futures traders remain largely bullish.

Is your portfolio green? View DOGE Profit Calculator

According to Coinglass, an assessment of token financing rates shows that, apart from the negative values ​​recorded on June 18-19, they have remained positive over the past two months.

Dogecoin funding rate

Source: Coinglass

Funding rates are the mechanism used in perpetual futures contracts to ensure that the contract price remains close to the spot price.

When an asset's funding rate is positive, it indicates increased demand for long positions. This means that more traders buy a coin in anticipation of a price increase than in anticipation of a fall in price.

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