Dogecoin (DOGE), the beloved meme coin in the cryptocurrency world, is facing a potential price decline as market sentiment shifts. The recent volatility in the overall cryptocurrency market has left investors wondering whether DOGE will rally or face a downturn.
While it’s difficult to predict the future price of DOGE, the daily chart is showing bearish price action. Currently, DOGE is hovering around a crucial support level of $0.383 after breaking out from an ascending triangle pattern. Despite the recent ups and downs, the coin has managed to retest the breakdown level and is finding support at this level.
If DOGE fails to hold the $0.383 support level and closes below it, there is a strong possibility that the price could decline by 15% to reach $0.31 in the coming days. However, the Relative Strength Index (RSI) for DOGE is currently at 50, indicating a potential price reversal in the near future.
On the bright side, data from Coinglass shows that traders are holding strong bullish sentiment towards DOGE. The Binance DOGEUSDT Long/Short ratio stands at 5.13, suggesting that the majority of traders are holding long positions. In fact, 83.68% of the top Binance traders are currently holding long positions, while only 16.32% hold short positions.
When considering these on-chain metrics alongside technical analysis, it appears that bulls are working hard to keep the price above the crucial support level and prevent further decline. However, at the time of writing, DOGE is trading near $0.39, experiencing a price decline of over 2.65% in the past 24 hours. The trading volume has also decreased by 26%, indicating a decrease in participation from traders and investors as sentiment turns bearish.
In conclusion, while the future price of DOGE remains uncertain, it is clear that traders are maintaining a bullish outlook on the coin. Whether DOGE will rally or face a decline in the coming days remains to be seen, but for now, all eyes are on the crucial support level of $0.383.