Dogecoin price forecast: what is stopping DOGE from growing.
Dogecoin price could decline further if demand continues to fall
The Chaikin indicator signals the withdrawal of liquidity from the DOGE spot market
Weighted sentiment remains negative for most of the month.
Let's look at what factors are holding back the strengthening of Dogecoin (DOGE), despite the general rally of altcoins
The price of Dogecoin (DOGE) is under pressure from several unfavorable factors: declining intraday demand and negative sentiment continue to plague the coin.
Dogecoin under the gun of sellers
The price of memcoin rose to a local maximum at $0.17 (May 26), but then rolled back from it. This drawdown is associated with a drop in demand for the token during this period. The intraday number of addresses transacting with DOGE decreased by 9%. The daily number of unique transactions decreased by 5%.
Investors are generally negative towards DOGE, which leads to a decrease in the number of active addresses on the network. Pessimism haunted the asset for most of the month. At the time of publication, this figure was -0.71. A negative value indicates the prevalence of negative comments about memcoin on social networks.
DOGE forecast: problems are not over yet
At the time of writing, the Relative Strength Index (RSI) was poised to break below the 50 neutral line and fall below it.
This technical indicator determines the momentum of price movement and identifies potential buying and selling opportunities. In the current situation, it indicates that the asset is not overbought or oversold, but there is a shift towards the distribution of coins.
Meanwhile, the Chaikin Money (CMF) indicator, which tracks capital flows in and out, is below zero at -0.01 and indicates an outflow of liquidity from the DOGE market.
If this trend continues, the price may fall below $0.156, to the $0.152 support area and further to the psychological level of $0.150.
The latest cryptocurrency news, analytics and forecasts - all the most interesting things in our Telegram channel. Subscribe so you don't miss anything important.
