In This Post:
- Dogecoin struggles to break through resistance at $0.11.
- Large investors (whales) continue to buy, showing long-term confidence.
- A possible breakout could push Dogecoin to $0.18 if support holds.
Dogecoin‘s (DOGE) price recently dropped by 4.1%, now sitting at $0.1044. Over the past week, it has fallen by 0.7%, struggling to hold onto earlier gains. Although big investors are buying more, Dogecoin’s price rally remains uncertain unless it can get past key levels.
Resistance at $0.11 and Market Pressure
Dogecoin is facing strong selling pressure around $0.11, making it hard for the price to go up. The IOMAP (In/Out of the Money Around Price) model shows that a large number of investors bought DOGE between $0.1101 and $0.1134. These investors may sell if the price rises, stopping any further gains.
If Dogecoin can’t break through this resistance, it might stay around $0.1 or even drop further to $0.08. The situation is also uncertain because fewer traders are holding on to Dogecoin futures, signaling a lack of confidence.
Whale Investors Keep Buying
Despite the challenges, big investors, known as whales, continue to buy more DOGE. According to Santiment, holders with 1 million to 10 million DOGE now own 7.31% of the total supply. Those with 10 million to 100 million DOGE have also increased their holdings to 12.85%. This shows that whales believe in Dogecoin’s long-term potential, even though the short-term outlook is unclear.
Possible Breakout from Falling Wedge Pattern
Technically, Dogecoin’s price is below the 20-day Exponential Moving Average (EMA) and hasn’t been able to get past the 50-day EMA resistance at $0.1127. Sellers currently have the upper hand, as the Relative Strength Index (RSI) has dropped to 45. If the RSI continues to fall, DOGE could dip below $0.1.
However, there’s a chance for a turnaround. A falling wedge pattern has formed, which usually signals a bullish move. If Dogecoin can break out of this pattern, the price could rise by 71.5%, reaching $0.18. For this to happen, Dogecoin needs to stay above $0.1 and see more trading activity.
Looking Forward
Dogecoin is at a crucial point. While big investors are buying more, strong resistance is keeping the price down. A breakout from the falling wedge pattern could lead to a significant rise, but Dogecoin must overcome key challenges first.
