Dogecoin [DOGE], a meme-inspired cryptocurrency, has been struggling with market volatility over the past week despite previous attempts to rebound.
While Dogecoin is showing a slight upward trend as it gained 2.7% last week, its recent performance has been disappointing.
Although Dogecoin is seen as a currency with great potential in this market cycle, its value has seen a significant drop. Currently, the price of Dogecoin is $0.10, down 2.50% in the past 24 hours.
However, many investors remain optimistic about the future of Dogecoin. To translate this optimism into meaningful gains, Dogecoin must break through a key price threshold to regain upward momentum.
Dogecoin’s struggles continue
An assessment of the price in and out of the money (IOMAP) shows that DOGE’s maximum support is around $0.11. At this price level, 39,700 Dogecoin addresses purchased 36.13 billion and are in a loss.
IOMAP categorizes addresses according to earning addresses, breakeven addresses, and losing addresses. It does this by comparing the on-chain acquisition cost basis to the current cryptocurrency value.
In simple terms, the greater the volume within a price range, the stronger the support or resistance. As shown below, the largest cluster exists at $0.11, as the volume bought at this price is much higher than all other ranges between $0.090 and $0.12.
An assessment of the price in and out of the money (IOMAP) shows that DOGE’s maximum support is around $0.11. At this price level, 39,700 Dogecoin addresses purchased 36.13 billion and are in a loss.
IOMAP categorizes addresses according to earning addresses, breakeven addresses, and losing addresses. It does this by comparing the on-chain acquisition cost basis to the current cryptocurrency value.
In simple terms, the greater the volume within a price range, the stronger the support or resistance. As shown below, the largest cluster exists at $0.11, as the volume buying at this price is much higher than all other ranges between $0.090 and $0.12.
This further supports the idea that a strong supply barrier limits Dogecoin’s ability to rise further. To break through this level, Dogecoin must contend with this level, but it currently lacks the momentum to break through this level.
Additionally, the daily DOGE/USD chart shows a decline in the Money Flow Index (MFI), which uses price and volume to measure buying and selling pressure. When the MFI rises, it indicates that buying pressure is dominant, while a decline indicates that sellers are dominant.
Currently, the MFI has fallen below the neutral line, indicating that sellers are outpacing buyers and a recovery is unlikely in the short term.
DOGE Price Prediction: Meme Coin Price to Fall Further
As for where to go next, DOGE will almost certainly drop below $0.10. One reason for this is its Moving Average Convergence Divergence (MACD), which uses the trend of two exponential moving averages (EMAs) to measure momentum.
When the 12-day EMA (blue) is above the 26-day EMA (orange), the trend is bullish and prices are likely to move higher. But as of the time of writing, the longer EMAs are above the shorter EMAs, indicating that sellers have the upper hand.
As long as this situation continues, the price of Dogecoin may not be able to rebound. Instead, the value of Dogecoin may fall to $0.086
On the other hand, if the buying pressure increases, the price of the token could bounce off the $0.10 support level. In this case, the value of DOGE could climb to $0.14.
