Dogecoin Price Analysis

With Bitcoin falling to the $88,000 mark, Dogecoin, the leading meme coin, has dropped nearly 17% over the past week. Dogecoin currently holds a market cap of $31.27 billion, commanding over 50% of the meme coin market, which is valued at $58.20 billion.

As of now, Dogecoin trades at $0.2110, experiencing a 24-hour surge of 4.68%. Will this short-term recovery allow Dogecoin to rebound from the significant psychological level of $0.20?

Dogecoin Price Crash: $0.20 Support at Risk?

On the 4-hour price chart, Dogecoin persists in a bearish trend influenced by a resistance trendline originating from the swing high at $0.41, which has caused multiple bearish rejections.

Dogecoin is down nearly 50% from its swing high, with a bearish alignment of the 50, 100, and 200-day EMA lines. The price decreased to a low of $0.1953 but has shown a brief recovery. This bounceback sees the daily 4-hour RSI emerging from the oversold region, indicating a potential retest of the previously broken support trendline around $0.23.

Sentimental Shift: Will Dogecoin Crash Ahead?

Despite the significant decline in Dogecoin, long-term holders seem to remain in denial, as noted by crypto analyst Ali Martinez. He reports that the long-term NUPL (Net Unrealized Profit/Loss) ratio has shifted from euphoria or greed into a phase of belief/denial.

As the broader market continues to face declines, the sentiment may evolve into anxiety, increasing the likelihood of a prolonged correction.

Dogecoin Network Activity Plummets

Amid fears of a substantial crash, there’s an alarming drop in Dogecoin network activity, declining by nearly 95%. Active addresses have plummeted from 2.66 million in November to just 130,282 currently.

Dogecoin Key Price Levels

Dogecoin’s ability to maintain dominance above the $0.20 psychological mark suggests a possibility of recovery, aiming to challenge the overhead trendline near the $0.23 level. If the price breaks through this crucial resistance, it could initiate a bull run targeting the 200 EMA line near $0.2720. Conversely, a breakdown might test the $0.1650 mark, followed by the $0.15 psychological support.