[Dogecoin (DOGE) recovery in doubt due to $300 million signal]
The price of DOGE has fallen by 13.67% in the past seven days, and holders are hoping for a rebound, but data from IntoTheBlock shows that the situation is not optimistic.
Blockchain analytics platform IOMAP data shows potential selling pressure around $0.11. IOMAP classifies addresses as profitable, flat or losing money to identify areas of support and resistance. According to the data, 17,960 addresses purchased 1.49 billion DOGE, forming support. But at the $0.11 resistance zone, 40,200 addresses hold 2.74 billion DOGE worth about $300 million, potentially preventing a price rebound.
If this resistance is verified, DOGE could fall again with the next support level between $0.09 and $0.10. Another metric that supports this idea is the market value to realized value (MVRV) ratio. A high MVRV ratio indicates higher unrealized gains, indicating a possible increase in willingness to sell. Low values represent unrealized losses and indicate a higher likelihood of holding. Currently, DOGE has a 30-day MVRV ratio of -7.26%.
Historical data shows that DOGE prices tend to recover when the MVRV ratio is between 9.53% and 21.88%. So if the pattern aligns, DOGE holders could be facing another round of unrealized losses.
The daily chart shows that DOGE’s decline began on July 27 after the price rebounded from $0.13, during which time the price fell by 17.55%. The EMA indicator further points to bearish price action, with the 50-day EMA currently sitting above the 20-day EMA.
If this continues, DOGE is likely to trade in the $0.11 range, and if selling pressure increases, the price may drop to $0.09. But if a golden cross occurs, the trend could turn bullish and the price could jump to $0.12 or $0.13.
Analyst Javon Marks suggests that Dogecoin could see a significant bullish breakout in the subsequent cycle, potentially reaching $10 for a 7,200% gain.
