Why Dogecoin traders should think twice before going long now

Dogecoin's price may continue to fluctuate between $0.12 and $0.15. Older coins are being moved, indicating a possible price decline in the near term.

Despite a 12% drop in value over the past week, Dogecoin's price is expected to remain above $0.10 in the coming weeks. This analysis is based on the Global In and Out of Money (GIOM) indicator.

GIOM measures the number of addresses holding coins at a profit and those at a loss. This indicator can serve as on-chain support or resistance for a cryptocurrency. A higher number of addresses holding coins at a specific price level indicates greater support or resistance.

IntoTheBlock indicates that Dogecoin is currently trading above a significant on-chain support level where approximately 45 billion DOGE were purchased at an average price of $0.11. This suggests that this level could act as a barrier preventing DOGE from falling below $0.11.

However, surpassing $0.16 may prove challenging for the cryptocurrency. At this level, approximately 20 billion DOGE were purchased at a loss, and holders may be more likely to sell at breakeven.

Therefore, Dogecoin's price may continue to oscillate between $0.12 and $0.15 in the near term.

Sentiment analysis using data from Santiment reveals a negative Weighted Sentiment (-0.552), indicating that market participants are not optimistic about DOGE's bullish potential. This negative sentiment could dampen demand for the coin and contribute to its sideways price movement.

However, should buying pressure increase, Dogecoin could rally and break above the $0.16 resistance. Conversely, in an extremely bearish scenario, the price could dip to $0.12.

An increase in Mean Coin Age (MCA) suggests that older coins are being moved. This could indicate increased selling pressure, potentially pushing the price down in the coming days.

At the time of writing, DOGE was trading at $0.14. While the price may rise in the long term, the short-term outlook appears uncertain. Traders may consider exercising caution when considering long positions in DOGE.