Dogecoin Consolidates Within a Horizontal Channel Since August 8

Dogecoin Stalls in Horizontal Channel Since August 8

Dogecoin (DOGE) has traced within a horizontal channel since August 8. Recently, it tested the resistance level but failed to break out due to a bearish divergence between price and trading volume.

Dogecoin Analysis

The asset's movement within the channel reflects indecision among buyers and sellers. DOGE has encountered resistance at $0.11 and support at $0.09 since August 8. The recent price rally towards resistance represented a 4% increase over seven days.

Meanwhile, daily trading volume declined by 37%, resulting in a negative divergence with price. This suggests a lack of momentum for a sustained rally, potentially leading to a price correction.

In contrast, upward price trends typically exhibit increased volume, indicating increased buying interest. The drop in trading volume during the price rise indicates weakening support for the rally.

Whale Activity

The absence of whale activity in the market further underscores DOGE's vulnerability to a downtrend. Data from IntoTheBlock shows a 100% decline in whale net flow, indicating their withdrawal from trading over the past week.

Price Projection

Despite the bearish divergence and lack of whale support, DOGE continues to trade sideways. The DOGE/TRY pair currently stands at 3.62 TL.

Parabolic Stop and Reverse (SAR) indicator points remain below the price level since August 10, suggesting the absence of a clear upward trend.

If DOGE breaks above the upper channel line, it could potentially test $0.11. Conversely, a downward move could lead to a drop back to the $0.09 support and potentially $0.08.