- Dogecoin fell under a crucial support level.
- Market sentiment around the memecoin remains bearish.
Dogecoin [DOGE] investors have been struggling for multiple days as its weekly chart and daily chart remained red. Things can get even worse as the memecoin fell below a critical support level.
Does this indicate a further price decline in the coming days?
Dogecoin’s newest trouble
CoinMarketCap’s data revealed that the world’s largest memecoin’s price dropped by more than 11% in the last seven days. In the last 24 hours alone, the coin’s value declined by more than 4%.
At the time of writing, DOGE was trading at $0.119 with a market capitalization of over $17.2 billion. The memecoin was testing a crucial support at press time.
Source: TradingView
AMBCrypto planned to take a look at DOGE’s metrics to see whether the memecoin can test the support. Our analysis of IntoTheBlock’s data revealed that 72% of DOGE investors were in profit.
However, interstors’ confidence in the coin dwindled.
As per our analysis, DOGE investors’ average balance dropped to $2.6k in the last few days, indicating that investors were expecting the memecoin’s price to drop further.
Source: IntoTheBlock
What to expect from DOGE
AMBCrypto then checked the memecoin’s on-chain data to better understand what to expect from them.
As per our analysis of Santiment’s data, Dogecoin’s MVRV ratio dropped sharply over the last week, which can be inferred as a bearish signal.
Additionally, its Daily Active Address dropped after spiking on the 20th of June, reflecting a decline in the memecoin’s usage.
The memecoin’s Weighted Sentiment also remained in the negative zone, hinting that bearish sentiment around the coin was dominant in the market.
Source: Santiment
AMBCrypto then planned to take a look at DOGE’s daily chart to see what indicators suggested about the memecoin’s upcoming days.
As per our analysis, the Chaikin Money Flow (CMF) registered a downtick, indicating a further price drop.
However, the Relative Strength Index (RSI) was about to enter the oversold zone, which might increase buying pressure and lift the memecoin’s price. The MACD also displayed the possibility of a bullish crossover.
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This meant that there were chances of a trend reversal soon.
If a trend reversal happens, then DOGE would first touch $0.127. A breakout above that level might allow it to reach $0.148 in the coming weeks.
Source: TradingView