Is Dogecoin About to Face a Major Rejection at $0.1073 Resistance?

Dogecoin (DOGE) Faces Resistance, Technical Indicators Signal Downturn

Dogecoin (DOGE) is currently encountering resistance at the 100-day Exponential Moving Average (EMA) of $0.1073. On-chain data reveals a decline in daily active addresses, indicating waning demand for the Dogecoin network. Additionally, dormant wallets are becoming active, suggesting a bearish outlook.

As of Friday, DOGE was trading slightly higher at approximately $0.1010. However, analysts predict a potential decline of about 24% if the resistance at $0.1073 continues to hold. This could lead DOGE to retest the support level at $0.0782.

Technical Indicators Reinforce Bearish Sentiment

Technical indicators reinforce the bearish sentiment surrounding Dogecoin. The Relative Strength Index (RSI) is below its neutral level of 50, while the Awesome Oscillator (AO) is trading below zero, indicating a lack of upward momentum. These indicators suggest a possible bearish trend for DOGE.

Declining Network Activity Raises Concerns

The decline in daily active addresses indicates reduced network activity. Santiment's Daily Active Addresses index tracks the number of active addresses over time. A decrease in active addresses signals diminished demand for the Dogecoin blockchain.

Age Consumed Index Indicates Potential Price Tops

The Age Consumed index shows spikes in dormant tokens moving, which can indicate local price tops or bottoms. Historically, these movements have preceded declines in Dogecoin's price. A recent uptick in the chart suggests that DOGE may be poised for a downtrend.

Key Resistance Level to Monitor

Despite the bearish outlook, if Dogecoin can close above the $0.1073 resistance level on a weekly candlestick, it could reverse the bearish thesis. Such a development may trigger a rally, allowing DOGE to revisit its higher resistance level at $0.1435.

Traders are advised to monitor these levels and indicators closely as Dogecoin navigates this crucial phase.