Dogecoin Faces Continued Price Decline

Dogecoin's Price Decline Persists

Dogecoin (DOGE) has fallen below $0.12, extending its seven-day decline. This has raised concerns among DOGE investors, who hold the top spot among meme coins by market capitalization. Significant selling pressure at the current price level is also impacting the situation negatively.

Resistance and Support Levels for Dogecoin

DOGE has experienced a 13.67% drop over the past week, leading to continued investor anxiety. Data from leading market intelligence provider IntoTheBlock presents a similar outlook.

According to IntoTheBlock, the In/Out of the Money Around Price (IOMAP) indicates potential selling pressure at the $0.11 level.

A higher number of addresses within a price range indicates stronger support or resistance at that level. On the left side of DOGE's price range (as shown in the graph above), 1.49 billion coins were purchased by 17,960 addresses, potentially preventing further price declines. However, 2.74 billion coins worth $300 million are held by 40,200 addresses on the right side.

This region is seen as a significant resistance barrier, preventing a price recovery to the support level. Failure to break through this level may lead DOGE to drop to the next support levels between $0.10 and $0.09.

Will DOGE Recover?

An analysis of the daily chart reveals that the price drop for DOGE started on July 27th, when it rose above $0.13. The decline over this period represents a 17.55% drop.

The Exponential Moving Average (EMA) provides insights into price direction. The EMA is a leading indicator that measures trend direction over a specific period.

At the time of writing, the 50 EMA (yellow) was below the 20 EMA (blue), indicating a downward trend.

If the current situation continues, DOGE may find support at the $0.11 level. However, selling pressure on Dogecoin could push the price down to $0.09.

However, a "golden cross" formation, where the 50 EMA crosses above the 20 EMA, could invalidate the downward outlook and shift DOGE's trend upward. In this scenario, DOGE's price could rise to $0.12 or $0.13.