- DOGE’s liquidation increased, which triggered the price decline.
- Market indicators and metrics looked bearish on DOGE.
The recent bull rally allowed most cryptos, including top meme coins like Dogecoin [DOGE], to register double-digit gains over the last month. But the growth momentum soon slowed down as DOGE’s price chart turned red.
But if the bullish pattern is to be believed, DOGE can kickstart yet another rally soon.
Chances of Dogecoin’s bull rally are slim
Crypto Tony, a popular crypto investor and trader, recently posted a tweet pointing out a bullish signal that emerged on DOGE’s price chart. As per the chart, DOGE’s price broke past a resistance level as its value went above the $0.08 mark.
This hinted at a fresh bull rally, which could have lifted DOGE’s price to new highs.
$DOGE / $USD – Update #Memeseason is only a solid pump away .. Keep your eyes on this legends pic.twitter.com/GI4eWa6YyK
— Crypto Tony (@CryptoTony__) November 20, 2023
However, things were quick to change as the coin’s price witnessed a correction in the recent past. According to CoinMarketCap, DOGE’s price dropped by more than 5% in just the last 24 hours.
At the time of writing, it was trading at $0.07672 with a market capitalization of over $10.8 billion. The bad news was that the price decline was accompanied by a hike in its trading volume, which is generally perceived as a bearish sign.
AMBCrypto’s analysis of Hyblock Capital’s data revealed a possible reason behind the recent downtrend. As per the analysis, DOGE’s liquidation increased when its price touched the $0.082 mark. Due to the hike in selling pressure, the coin’s price declined.
Source: Hyblock Capital
The price drop also took a toll on the meme coin’s popularity. AMBCrypto checked Santiment’s data and found that Dogecoin’s social volume plummeted over the last few days. Negative sentiment around the meme coin also increased, as evident from the drop in its Weighted Sentiment.
Source: Santiment
Going forward
ABCrypto’s analysis of DOGE’s daily chart revealed quite a few bearish indicators. For example, the MACD displayed a bearish crossover. The meme coin’s price touched the upper limit of the Bollinger Bands.
Both its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered downticks, increasing the chances of a continued price drop.
Source: TradingView
How much are 1,10,100 DOGEs worth today?
It was interesting to note that whale activity around the meme coin also dropped off late. Notably, as per Santiment’s data, Dogecoin’s Whale Transaction Count and Velocity started to decline over the last week.
A drop in the metric meant that DOGE was used in transactions less often within a set time frame. Considering the aforementioned indicators and metrics, it will be intriguing to watch whether DOGE manages to initiate a new bull rally anytime soon.
Source: Santiment
