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- Dogecoin’s price has dropped 12% in three days, now at $0.12, with concerns it might fall below $0.10.
- Sell orders for DOGE outnumber buy orders, creating a large sell-wall.
Dogecoin (DOGE) has experienced a significant decline, falling to $0.12 as of this writting, marking a 12% drop over the past three days. On-chain data reveals a growing trend among short-term traders seeking to exit their DOGE positions, raising concerns about a potential further decline below $0.10.
Dogecoin’s recent performance has been notably disappointing. Over the past week, DOGE has been on a downward trajectory, starting from a peak of $0.143 on July 21. This decline is observed despite the fact that the leading cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH), have demonstrated significant increases.
This has been largely due to the contrast between Dogecoin’s lack of movement and the bull run of other large-cap coins, which has prompted experts to question traders’ patience eroding.
Sell Orders Overwhelm Buy Orders for Dogecoin
The selling pressure on Dogecoin has increased in the past few hours due to a decrease in the price of the digital asset. According to the Exchange Order Books data provided by IntoTheBlock, DOGE is in a bearish trend. Traders have placed sell orders for approximately 730 million DOGE at an average price of $0.12. This amounts to a sell-wall valued at over $92 million.
In contrast, buy orders for DOGE total only 380 million, resulting in a market supply excess of about 2.5 trillion DOGE. This over-supply means that there is pressure on the prices to fall as per the law of demand and supply. Furthermore, rival cryptocurrencies such as PEPE, XRP, and BCH have outperformed Dogecoin recently, which may prompt short-term traders to sell DOGE and reallocate their capital to better-performing assets.
Recent analytics from Santiment reveal a notable shift in social media focus from memecoins like Dogecoin to leading cryptocurrencies such as Bitcoin, Ethereum, and Solana. The “Social Dominance” metric, which tracks the proportion of discussions related to the top 100 cryptocurrencies, shows a decrease in attention towards Dogecoin and similar assets.
Analysts Identify Potential Bullish Patterns for DOGE
Prominent X user Ali Martinez believes the recent price patterns signal a bullish trend for DOGE. According to Martinez, the coin has been trading within a descending triangle in both 2016 and 2021 prior to experiencing huge price surges. He expects the same spike, expecting it to rise by 140% to 230% before a correction of 56% to 60% that could be followed by another bull market.
I haven't sold one single $DOGE. I've just been buying!#Dogecoin is playing the same pattern we've seen before. It consolidates in a descending triangle, sees a 140% to 230% rally, and retraces by 56% to 60% before entering a bull run.
So now we just wait!!! pic.twitter.com/YKtOYJd638
— Ali (@ali_charts) July 25, 2024
Martinez’s confidence in DOGE is evident in his investment strategy. He has continued to acquire DOGE tokens, showing strong belief in its upward potential. From his analysis, he notes that the current price actions are in line with previous bullish patterns and could reach new highs in the next few months.
Other analysts also express optimism about DOGE’s prospects. X user Mags previously suggested that the coin’s accumulation phase might be ending, with a potential “parabola” stage on the horizon that could drive the price above $1. Additionally, KALEO forecasts that DOGE could experience significant rapid growth after extended periods of sideways movement, potentially surpassing Bitcoin (BTC) in performance.
