Dogecoin Price Analysis: Can It Sustain Above $0.07 Amid Bearish Pressure?
Key Insights
Factors Contributing to DOGE's Price Decline
The loss of the $0.18 accumulation zone has put Dogecoin on a downward trajectory.
Is $0.07 a Possible Target for Dogecoin?
Dogecoin could reach $0.07 if bearish conditions persist and bulls fail to protect key accumulation zones.
As of the latest update, Dogecoin's price dropped nearly 8% in the last 24 hours, driven by mounting bearish sentiment. The cryptocurrency has been under pressure since hitting $0.30, with more than 75 altcoins outperforming Bitcoin during this period. This aligns with a potential decline to $0.07.
Probability of DOGE Reaching $0.07
According to Dogecoin's UTXO Realized Price Distribution, the critical level at $0.18 serves as a decisive point. A sustained breach could lead prices to the $0.07 zone, where approximately 28.28 billion DOGE, or 18% of the supply, was accumulated.
While the break below $0.18 intensifies the downward trend, a rebound is possible before reaching $0.07. The analysis highlights further areas of interest in price action.
Resistance Challenges for Dogecoin
On the technical charts, DOGE faces increased selling pressure, evident as it breaks below the Ichimoku cloud on the 4-hour timeframe. The momentum suggests a continuation of sell-side liquidity.
Price targets indicate $0.1688 as the next level to watch. For a bullish reversal, DOGE must surpass the Ichimoku cloud resistance; otherwise, bears may push prices back to around $0.15, a previous significant level.
Despite structural support, a drop to $0.07 seems unlikely. CryptoQuant data reveals derivative traders are starting to go long on DOGE, suggesting the $0.07 target may be distant.
Bearish Sentiment Dominates
Bearish sentiment persists as spot traders continue to sell. The Spot Taker CVD indicates a dominance of sellers since late September. Sentiment readings show both retail and informed investors are bearish, with values at -0.31 and -0.24 respectively.
Overall, while Dogecoin's price decline could continue, reaching $0.07 is improbable unless the bear market extends significantly. A market shift could see DOGE reclaim the Ichimoku cloud resistance and regain bullish momentum.