Dogecoin Market Predictions
Dogecoin returned to $0.40 on Thursday following a drop earlier this week.
The RSI diverges bearishly, and the MACD implies selling.
Selling pressure increases as DOGE investors book profit from recent gains, according to OPL.
Following a drop earlier this week, Dogecoin (DOGE) sits around $0.40 on Thursday. As the daily Relative Strength Index (RSI) displays a bearish divergence and the Moving Average Convergence (MACD) indicator implies a selling signal, DOGE may fall. The frequent increases in DOGE's Network Realized Profit/Loss (NPL) indicate holders are taking profit from recent gains and increasing selling pressure.
On November 23, Dogecoin set a new annual high of $0.48 but failed to break $0.44 barrier. After this setback, it fell almost 10% in three days till Tuesday. It rebounded significantly on Wednesday and is now about $0.403 as of Thursday.
The daily chart RSI indicates momentum weakening. The Dogecoin price's November 23 higher high does not match the RSI's lower high. Bearish divergences can cause trend reversals or short-term pullbacks. On Tuesday, MACD crossed bearishly, signaling a sell signal.
DOGE may retest the 61.80% Fibonacci retracement level, drawn from the November 3 low of $0.142 to the November 23 high of $0.480, around $0.350, which is the daily support level, if its drop continues.
Viewing memecoin's on-chain measure negatively is pessimistic. Santiment's Network Realized Profit/Loss (NPL) indicator calculates a daily network-level ROI from the coin's on-chain transaction activity. Simply simply, it measures market suffering. Strong NPL rises imply that coin holders are mostly selling their purses for a profit. Strong dips signify panic sell-offs and investor surrender since coin holders are losing money on average.
Since Monday, DOGE's measure has surged many times and achieved its annual peak on November 22. After similar surges in early April, Dogecoin plummeted. If history repeats, DOGE may fall in the next days.