🚨 Dogecoin (DOGE) holders beware! Analysis of potential plunge risk
In the near future, Dogecoin may face up to 20% price downside risk. Here are two key reasons and possible response strategies:
Analysis of the reasons for the decline
1️⃣ Robinhood's massive selling pressure
• Recently, the Robinhood exchange sold 146.6 million DOGE (about 56.5 million US dollars) and transferred more than 61 million DOGE in addition. This series of actions may inject huge selling pressure into the market and accelerate the price decline.
2️⃣ Technical signals suggest downside risks
• The technical chart shows an "inverted hammer pattern", indicating that short-selling power is increasing. If DOGE falls below $0.28, the price may slide further to $0.21, with an expected drop of up to 20%.
Is there still a chance of a rebound?
Despite the uncertain outlook, there are still some supporting factors:
• 200-day moving average support: The current price is still above the 200-day moving average, which may provide some support for short-term prices and avoid a larger decline.
• On-chain sentiment signal: The long-short ratio has fallen to 0.78 (the lowest point in the past month), but 44% of long positions indicate that some funds in the market are still optimistic about the rebound opportunity.
How should holders respond?
In the face of the current situation, investors need to carefully consider the following issues:
• Add positions on dips? If the price is close to the key support level and there is no obvious downward signal, some investors may choose to add positions in batches.
• Decisive stop loss? If the price continues to fall below the support, timely stop loss may be a more rational choice.
Warm reminder: calmly deal with market fluctuations
When market volatility increases, it is particularly important to remain rational. It is recommended that investors clarify their risk tolerance and think twice before making any decision. Do not blindly follow market sentiment!
What do you think? Welcome to share your coping strategies!
In addition, there is also a Musk-related dog coin worth paying attention to in the primary market, 𝒑𝒖𝒑𝒑𝒊𝒆𝒔 on the Ethereum chain, which is pretty good! You can observe and ambush in advance.
