[Dogecoin Price Analysis: Will This Signal Stop Dogecoin’s 40% Rise]
Dogecoin’s price performance has been positive over the past two weeks, driven by positive economic changes in the overall U.S. economy and Trump’s lead in the 2024 U.S. presidential race. Assets such as Dogecoin (DOGE) and Shiba Inu (SHIB) have witnessed significant gains since the release of positive CPI data on July 5.
Dogecoin price rose 40% between July 5 and July 17, but began to correct after reaching a high of $0.13 on July 17, falling back to $0.12 as of July 19. While prices retreated, other meme coins like PEPE and SHIB proved more resilient, maintaining their gains.
On-chain activity shows that trading activity by Dogecoin miners may be responsible for the price pullback. When the market rebounded around July 5, Dogecoin miners held 4.44 billion DOGE, but as of July 19, miner reserves had dropped to 4.37 billion DOGE, meaning they sold 700 million DOGE in 14 days.
Miners are influential stakeholders in the PoW cryptocurrency ecosystem, and their selling behavior could scare away existing holders and deter potential new entrants. At the same time, putting newly mined tokens into the market dilutes the short-term supply.
Currently, Dogecoin is trading at $0.11969, up slightly by 0.11%. Technical indicators show that Dogecoin is experiencing volatility, with the RSI at 50.07, which is neutral. Parabolic SAR shows a bullish trend with the first significant resistance level at $0.1212, a breakout of which could lead to a move towards $0.13 and beyond. Support lies at $0.0965, which if broken could lead to lower levels, threatening the $0.10 mark.
In summary, Dogecoin shows potential for further gains, but support at $0.10 needs to be watched. If the bullish momentum is maintained, the price could rise further, but if it falls below $0.0965, short-term price stability will be at risk.
