Dogecoin drops 11% this week: Can DOGE rebound to $0.127 or higher?

Dogecoin Price Drops Below Crucial Support

Dogecoin (DOGE) investors have faced a difficult period, with the weekly and daily charts showing a downward trend. The situation worsened when the memecoin breached a key support level.

DOGE's Recent Struggles

According to CoinMarketCap, DOGE's price has plunged by over 11% in the past week. In the last 24 hours alone, its value has declined by more than 4%. At the time of writing, DOGE trades at $0.119, with a market capitalization exceeding $17.2 billion.

Key Metrics

An analysis of IntoTheBlock's data reveals that 72% of DOGE investors are currently in profit. However, confidence in the coin has dwindled. Investors' average balance has dropped to $2.6k, suggesting that they anticipate further decline.

Chain Data Analysis

Chain data from Santiment indicates a bearish outlook. DOGE's MVRV ratio has fallen sharply, while Daily Active Addresses have decreased since a peak on June 20th. The Weighted Sentiment remains negative, reflecting dominant bearish sentiment.

Upcoming Outlook

A review of DOGE's daily chart suggests a possible trend reversal. The Chaikin Money Flow (CMF) indicates a potential further price drop. However, the Relative Strength Index (RSI) is approaching the oversold zone, which could lead to buying pressure and a price increase. The MACD also hints at a potential bullish crossover.

If a trend reversal occurs, DOGE may first reach $0.127. A breakout above this level could lead to a rally towards $0.148 in the coming weeks.