Dogecoin Creates Excitement with This Move: Detailed Chart Analysis and Key Data On August 20, Dogecoin price recorded a 6% increase as it attempted to retest the $0.11 level. This increase was also reflected in a significant increase in volume. Shortly after, especially at the time of writing, the memecoin erased all of these gains. While DOGE holders may have hoped for another rise, this analysis suggests that it may be difficult.
What's Happening on the Dogecoin Front?
Data from Santiment shows that Dogecoin’s one-day Realized Value has reached a monthly low of $12.43 million. In short form, this data serves as the aggregate cost basis for assets in an ecosystem. Given this data, Realized Value is the value of all assets relative to the last time they moved. An increase in this value indicates that the cryptocurrency could be priced higher as cheaper tokens are spent.
However, the decline is largely driven by capitulation as crypto prices may revalue lower as more expensive assets are spent. Keeping the above thesis in mind, DOGE’s price may struggle to break above $0.10 despite previous bullish signals.
Liquidation data is another indicator that Dogecoin could be struggling. This heatmap predicts price levels where large-scale liquidation could occur. For context, liquidation occurs when an exchange forcibly closes an open position due to insufficient margin funds to prevent further losses.
DOGE Chart Analysis
The technical perspective sheds more light on DOGE’s potential price action. According to the daily chart, the Relative Strength Index (RSI) remains below the neutral 50.00 zone. A reading below the midpoint, a technical indicator that measures momentum, suggests that the token has yet to break out of its bearish dominance.
Although the RSI degree has increased, it needs to rise above the 50.00 point to confirm the bullish trend. Therefore, it is not unreasonable to conclude that the Dogecoin price may continue to decline below $0.09 and $0.10 unless the specified condition is met.
A look at the Fibonacci retracement levels adds more insight to the forecast. Usually, the indicator determines the price levels that a cryptocurrency can reach. At the time of writing, DOGE is hovering around the $0.10 retracement zone, where the 23.6% Fib level is located. If the market condition remains the same, the price may not be able to rise beyond this point.
However, an increase in buying pressure could change the situation. If that happens, DOGE’s price could try to reach the 61.8% Fib level at $0.13. However, if the broader market crashes like it did on August 5, Dogecoin’s price could drop back to $0.08.