Dogecoin price recently gave up on a breakout after the entire crypto market crashed due to uncertainty from the Middle East conflict. Other altcoins, including DOGE, are also rising as Bitcoin price shows a gradual recovery to $61,200. However, on-chain indicators suggest that Dogecoin price is on track for a 12% decline.
Dogecoin price is rising despite negative on-chain indicators
A look at Dogecoin’s on-chain metrics shows that the altcoin is struggling to survive. According to Santiment data, the divergence between prices and DAAs (Daily Active Addresses) has fallen to a three-month low of -66%. The divergence between price and DAA indicates the relationship between a cryptocurrency’s price and its network activity.
The -66% divergence indicates a significant decline in network activity relative to price, suggesting that price increases are not supported by a corresponding increase in user activity. This could be a sign of weakening market sentiment and is a bearish signal for Dogecoin price.
Additionally, the NVT (Network Value to Transaction) ratio also jumped to a three-month high of 397.32. The NVT indicator measures the relationship between market capitalization (network value) and trading volume, and indicates that network value is high relative to trading volume, especially when prices reach three-month highs while falling. Show.
This suggests that Dogecoin may be overvalued and the price could fall further. On the other hand, it could also mean that investors are holding DOGE without trading.
Despite negative on-chain indicators, DOGE price today is $0.1081, representing an increase of 2.6% in the past 24 hours. According to Dogecoin price analysis, this situation may not last long.
DOGE Price Analysis: Hold on to $0.095
DOGE price trend is neutral to bearish. The chart shows a possible reversal following a fakeout above the neckline of the double bottom pattern. Price attempted to break out, but quickly fell below the 0.1150 resistance level. The price is currently trading slightly above the 50-day exponential moving average (EMA), but the fakeout suggests bearish sentiment.
Key support and resistance levels
$0.0950 — Strong support level that coincides with the bottom of a potential downside zone. This is an important level to watch, as anything below it could lead to further declines. $0.1050 — Current short-term support in line with recent price movements. $0.1150 — The previous neckline is currently acting as resistance after price failed to break above it. $0.1250 — High during the fakeout and another major area of resistance if price attempts to recover. Dogecoin price analysis chart
If DOGE price action forms a strong base at $0.0950, it could be a long-term buying opportunity. However, Dogecoin price predictions indicate that if the asset spikes and breaks above the neckline, it would indicate market strength and retest above $0.13, invalidating the bearish theory.
Frequently asked questions (FAQ)
The price-DAA divergence measures the relationship between a cryptocurrency’s price and its network activity. A negative divergence of -66% means that while Dogecoin’s price has increased, daily active addresses have decreased significantly. This could indicate waning interest in the coin and could lead to a price correction.
Yes, if Dogecoin holds support at $0.0950, it could form a strong foundation and provide a long-term buying opportunity. If the price breaks above $0.1150 and sustains there, the bearish outlook will be invalidated and a possible retest of the $0.13 level or above is possible.
Investors should closely monitor the $0.0950 support level. A solid foundation at this level could suggest a buying opportunity. However, if the price falls below $0.0950, it could trigger further decline. On the upside, a break above $0.1150 would once again demonstrate the strength of the market.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrencies, and the video game industry. His extensive experience includes working with a variety of startups to provide insightful, high-quality analysis that resonates with target audiences. As an avid crypto trader and investor, Evans is passionate about blockchain’s transformative potential across a variety of sectors. Outside of his professional work, he enjoys playing video games and exploring beautiful waterfalls.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
