What will happen to the price of Dogecoin

The price of Dogecoin has fallen by 2% over the past 24 hours, which has been nullified and translated a 7-day dynamics into minus. Several of the indicators show that the DOGE fall may continue.

We figure out what is happening on the Dogecoin (Doge) market and what to expect from the price of cryptocurrency.

Investors leave the Dogecoin market

The Hodl Waves metric shows that two key groups of Dogecoin holding their positions. These groups include:

• holders from 6 to 12 months, whose share has decreased from 15.46% to 14.705% over the past two weeks;
• Holders from 1 to 3 months, which had a sharper decrease from 8.0% to 4.614%.

This indicates that not only short -term traders are sold, but also medium -term and long -term holders. These groups often signal the change of moods in a wider base of holders. When both groups simultaneously reduce their positions, this usually means a decrease in confidence in short -term price restoration.

This is especially alarming, because the changes occurred during the fall, and not after growth. This means that holders do not fix profit, but come out with losses or minimal profit, which may indicate deeper fears about further decline.

A high volume in profit is a problem

At the time of writing, 76.95% of the Dogecoin circulating offer is still profitable. Historically, when this indicator exceeded 73%, price corrections followed.

The last time he reached this level, July 30, Dogecoin was traded about $ 0.22. Soon after, the price fell to $ 0.19.

Then the percentage of the offer in the profit fell to 61.79%, and only after that the price of Dogecoin began to grow again. Now we are again in the 76%range, and there is a risk that the situation will happen again: the offer in the profit should decrease before the buyers return. Until then, each increase is faced with strong sales pressure.

This is due to Hodl Waves. When the proposal in the profit is great, and medium and long-term holders begin to reduce their positions, this usually indicates fear of losing profit or expecting a deeper fall.

DOGE Forecast: Pressure of the bears is strong

On the technical side, Dogecoin is located near a critical support level of $ 0.21. If it drops below, the structure will clearly become a bear. The next key support is $ 0.20, but a wider bearish guide is $ 0.18, which will mean a drop of 15% of current prices.

Meanwhile, the Bull and Bear Power (BBP) indicator has become negative. This means that the sales force exceeded purchasing activity. Retail investors are selling, and buyers stand aside.

If the price drops below $ 0.21, the probability of falling will increase. But if Dogecoin rises above $ 0.23, this will change the forecast in a positive direction.

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