Dogecoin’s (DOGE) price prediction is rather bearish at the moment since the meme coin has been struggling to maintain bullish momentum. Over the past few weeks, the cryptocurrency has repeatedly failed to break through key resistance levels.
It is now teetering on testing the lower trend line as support. Plus, since the broader cryptocurrency market remains bearish, DOGE’s ability to sustain its rise is being challenged.
Dogecoin Is Missing a Crucial Boost
Dogecoin’s price is increasingly tilting toward the bearish side, with technical indicators suggesting a continuation of the downtrend. Notably, the Average Directional Index (ADX), a tool used to measure the strength of a trend, has seen a significant uptick. Currently, well above the 25.0 threshold, the ADX indicates a strong downtrend, pointing to a further decline in DOGE’s price action.
As the ADX rises, it confirms the increasing strength of the bearish trend for Dogecoin. Despite occasional brief rallies, DOGE has failed to capitalize on bullish opportunities, with its price being consistently pressured by market-wide sentiment.
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Dogecoin ADX. Source: TradingView
In addition to the technical indicators, on-chain metrics also paint a concerning picture for Dogecoin. Crypto whale activity has noticeably declined, particularly from addresses holding between $100,000 and $10 million worth of DOGE. These large holders account for 21% of the total DOGE supply, but recent data shows nearly no accumulation in the past month.
Dogecoin Whale Holdings. Source: IntoTheBlock
This lack of whale accumulation suggests that big investors are either cautious or disinterested in increasing their positions, a sign that confidence in a near-term recovery is low. With such key players sitting on the sidelines, the probability of a substantial bullish reversal becomes less likely, adding further pressure on the meme coin’s price.
DOGE Price Prediction: Another Day, Another Test
For the majority of August, Dogecoin’s price hovered around $0.097 and struggled to turn the $0.101 level into a reliable support floor. This failure has led to concerns that DOGE might lose support at $0.093 as well. If this occurs, the cryptocurrency could be in for a challenging September.
If Dogecoin fails to hold above the $0.093 mark, it will likely test the lower trend line of the ongoing downtrend. This level is expected to hover around $0.077, representing a 20% drop from current levels. Historically, $0.077 has served as strong support, and a breach of this level could further accelerate the downtrend.
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Dogecoin Price Analysis. Source: TradingView
However, all is not lost. Should Dogecoin manage to retain its footing at $0.093, it has a chance to flip $0.101 into a support level. This would give the coin room to rally, potentially invalidating the current bearish outlook. Nonetheless, significant buying pressure will be required for this scenario to unfold.
Conclusion:
As Dogecoin faces a bearish trend and struggles to find crucial support levels, its price prediction remains uncertain. With technical indicators signaling a downtrend and on-chain metrics showing decreased whale activity, the pressure mounts for DOGE to break free from its current slump. Will Dogecoin be able to defy the odds and rally back, or will it succumb to further downward pressure? Only time will tell in the turbulent world of cryptocurrency.
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