Dogecoin (DOGE) is in a precarious position, with its price pushed into a narrow range, indicating a potential decisive breakout in the near future.
Market analysts are closely watching the crypto’s struggle to break a long-standing resistance trendline as an upside breakout could spark another rally, while a continuation of the current stalemate could lead to a further decline.
Earlier this week, DOGE faced its fifth rejection due to a persistent resistance trendline that has thwarted its upward momentum. The rejection left its mark on the daily candlestick chart, marked by a prominent high wick, indicative of an aggressive overhead offering.
Historical data shows that such patterns often precede significant corrections in the cryptocurrency market.
The current price of DOGE, according to Coin geckois at $0.058295, with a 24-hour dip of 1.5% and a small seven-day loss of 0.1%.
DOGE seven-day price action. Source: Coingecko
In case the prevailing selling pressure continues, there is a good chance that the value of the coin will fall further by around 4-5%. This decline could potentially lead to a reevaluation of the annual support trendline, with an expected value of around $0.055.
Currently, the price of this memecoin is within the boundaries of two prominent trend lines, indicating the impending occurrence of a definitive upward rise or downward decline.
Dogecoin: a glimpse of hope amid mixed data
Despite the bleak price outlook, there is a glimmer of hope for DOGE enthusiasts. The report also predicts that if the coin manages to break above the resistance trendline, investors could witness a sharp 16.8% increase targeting the $0.068 level. This feature is poised to keep traders and investors on the edge of their seats.
On the other hand, data from IntoTheBlock reveals some intriguing insights into the current state of DOGE. It has been determined that a significant portion of DOGE addresses, specifically 61%, are currently locked out of access.
Source: IntoTheBlock
A deeper dive into the data reveals the fact that only 31% of total DOGE holders are making a profit, highlighting the challenging landscape for DOGE investors. Another 10% of holders remain in a neutral position, while a significant 59% of Dogecoin holders are in a losing position.
DOGE’s silver lining
A bright spot in this scenario is the fact that 72% of DOGE holders have held their positions for over a year, indicating a strong commitment to the digital asset. A further one 26% of holders held DOGE for a term ranging from one month to twelve months, while 2% of holders have relatively shorter positions, spanning less than one month.
DOGE market cap currently at $6.8 billion. Chart: TradingView.com
While the Dogecoin community eagerly awaits the impending breakout or collapse, the cryptocurrency market remains a dynamic and uncertain space, where opportunities and risks are constantly changing.
(The content of this site should not be construed as investment advice. Investing involves risks. When you invest, your capital is subject to risk).
Featured image from MarketWatch