📊 Price Trend Analysis: The current downtrend in Dogecoin's price can be tracked using the descending resistance trend line. This decline can largely be explained by the widespread uncertainty surrounding the approval of a Bitcoin spot ETF. During this period, the DOGE price has significantly dropped by 24%, decreasing from a peak of $0.107 to the current price of $0.813. Daily timeframe analysis shows that this decline has turned into a pattern that could signal potential further decline in DOGE.
📈 Analyzing the daily chart, it becomes evident that the Dogecoin (DOGE) price adheres to two key trendlines despite prevailing market conditions. The first is the descending trendline outlining the current corrective phase, providing dynamic resistance.
📉 The second is the support neckline of the well-known bullish reversal pattern "Head and Shoulders." This pattern, typically observed at market peaks, implies an inevitable trend reversal and a possible prolonged drop in the asset's value.
💡 Conversely, if the introduction of a Bitcoin spot ETF begins to have a positive impact on Bitcoin, the broader altcoin market, including Dogecoin, may also benefit. This scenario could lead to Dogecoin breaking above the resistance line, rendering the bearish scenario invalid.
💹 Potential Growth: In this case, the price of DOGE could potentially grow by approximately 35%, reaching around $0.11.
📊 Global In/Out of the Money Indicator: The Global In/Out of the Money (GIOM) indicator for Dogecoin provides a more positive outlook. Currently, 55.68% of DOGE holders are "in the money" (profit), and 38.81% are "out of the money" (incurring losses). This distribution indicates a relatively stable investor base that could support a bullish trend for Dogecoin in the future. However, a potential crash per the "Head and Shoulders" pattern may lead to losses for half of these addresses, increasing the likelihood of panic selling.
📈 Relative Strength Index (RSI): The slope of the daily RSI below 50% indicates that sellers firmly control this asset.
🔄 Exponential Moving Average (EMA): The coin's price fluctuating within a narrow range between the 50-day and 200-day EMA suggests volatility in market sentiments.
🚨 Disclaimer: Information was sourced from coingape and is not financial advice.
