Dogecoin price has sustained a rigorous bullish outlook since last week’s Monday crash. However, continued upside movement may suffer setbacks due to a massive cohort of supply. Nevertheless, with more dips seems to come high liquidity, which might eventually uphold a major breakout.

Dogecoin Price Analysis As Supply Threatens Uptrend

Dogecoin price sits above $0.1 support, while bulls face major resistance at $0.11. According to IntoTheBlock, blockchain data hints at more challenges in the meme coin’s recovery journey, highlighting that approximately 17,300 addresses purchased 32.6 billion between $0.1101 and $0.1119.

This cohort represents potential supply, which may dampen the uptrend as bulls push for a breakout targeting $0.2. Moreover, above the largest red cycle, as shown in the model, resistance shrinks significantly, likely catalyzing a DOGE price increase.

On the downside, Dogecoin faces immense downside risks due to the lack of robust support areas. The most solid buyer congestion zone sits at $0.1, holding 9.2 billion DOGE bought by roughly 25,640 addresses. Sliding below this level could trigger a major sell-off as Dogecoin seeks more liquidity in the $0.09 and $0.08 areas.

Dogecoin IOMAP model | IntoTheBlock

The futures market open interest is back in the red after a bullish streak from the previous week’s crash. Coinglass data shows the DOGE OI at $483 million, down 0.85% in 24 hours. This drop coincided with a slump in volume by a staggering 31.8% to $991 million. Remember, decreasing OI and volume often signals incoming bearish performance as traders refrain from taking up new positions.

Dogecoin price may not be able to take down $0.1 resistance with the Super Trend indicator flipping above it. Traders holding long positions must be careful and ready to change tactics should Dogecoin crash below $0.1 support. In addition to the IOMAP resistance at $0.1, the 200-day Exponential Moving Average (EMA) at $0.1144 which may delay the advance to $0.2.

Doge price chart | Tradingview

Conversely, DOGE price forecast points to a confluence support slightly above $0.1, created by the 20-day EMA and the 50-day EMA. A bullish four-hour candle is forming on the chart, with a daily close above the support expected to call more traders to buck Dogecoin price bullish thesis. Day traders can place targets at $0.11, awaiting another confirmation of the uptrend, before going all-in on DOGE.

The post Dogecoin Price May Not Surge Past 33B DOGE Key Resistance appeared first on CoinGape.

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Filed under: News - @ August 13, 2024 7:21 pm