Dogecoin (DOGE) is holding its ground at $0.33, facing a tug-of-war between bulls and bears in a volatile crypto market.
With broader market corrections weighing heavily, is a rebound for Dogecoin on the horizon, or will it fall further? Let’s dive into the technicals and sentiment shaping this meme coin’s trajectory.
Market Overview
As Bitcoin slides to $92,000, the meme coin segment, including Dogecoin, has dipped below a $100 billion market cap. DOGE, down 3.33% in the past 24 hours, has seen a total weekly drop of 4.08%.
Despite this, Dogecoin remains a dominant force in the meme coin arena, holding over 50% market share with a $50 billion valuation. However, the surge in its circulating supply has some investors uneasy, adding to bearish sentiment.
Price Analysis
On the 4-hour chart, Dogecoin’s price reveals an ongoing struggle. A recent attempt to hold above the 61.80% Fibonacci retracement level ($0.37772) ended with consolidation.
The market correction pushed DOGE to a 24-hour low of $0.32417, just above the crucial 38.20% Fibonacci level ($0.33030). This level has served as strong support, preventing a deeper drop.
The psychological resistance at $0.40 remains a formidable barrier. Despite the recent bearish crossover between the 20- and 50-period EMA (Exponential Moving Average), the 4-hour RSI (Relative Strength Index) suggests a glimmer of hope. The RSI hovers just above the oversold zone, signaling a bullish divergence that could fuel a short-term rebound.
| Key Levels | Price |
|---|---|
| 61.80% Fibonacci | $0.37772 |
| Resistance 1 | $0.40 |
| Current Price | $0.33957 |
| Support | $0.33030 |
| Bearish Zone | $0.30 |
Investor Sentiment
Market data highlights negative trading returns for DOGE, with wallets active in the last 30 days showing losses. Santiment’s analysis places Dogecoin’s Market Value to Realized Value (MVRV) ratio at -8.892%, suggesting potential undervaluation. Comparatively, Bitcoin’s MVRV is -3.73%, and Cardano’s is -6.693%.
This negative MVRV could be an indicator of a buying opportunity, as historical patterns often show price recoveries after significant drops. As the saying goes, “blood on the streets” may attract professional traders eager to scoop up DOGE at a discount.
Price Targets
With the RSI signaling bullish divergence, Dogecoin could stage a comeback if bulls seize the opportunity. Immediate resistance lies near the 50% Fibonacci level and the 200 EMA at $0.35. A successful break could propel DOGE toward the $0.40 psychological barrier, but significant resistance is expected there.
However, failure to maintain current support could see DOGE testing the $0.30 zone, a critical threshold for avoiding further losses.
Dogecoin’s current position at $0.33 presents a crucial juncture. While technical indicators hint at a possible rebound, broader market conditions and sentiment will play a significant role. For investors eyeing a buying opportunity, the current MVRV ratio suggests that now could be the time to watch DOGE closely.
