Here Is Why Dogecoin (DOGE) Won’t Reach $0.30 Soon

7 months ago 4

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The recent surge in Dogecoin (DOGE) price from $0.12 to $0.22 has prompted whales to sell their holdings, signaling a potential shift in market dynamics. While EMA Lines indicate a bullish trend for DOGE, the ADX metric suggests this trend lacks the strength to sustain new highs.

Additionally, the SAR metric hints at an impending trend reversal, which could see the DOGE price adjust in response to these combined indicators. Investors are closely monitoring these technical signals to navigate the volatile cryptocurrency market.

Whales Are Selling Their DOGE

The DOGE market is witnessing a waning interest from substantial investors, as reflected by the decline in the number of large-scale addresses – those holding at least 10 million DOGE.

Holders holding between 10 million and 100 million decreased from 553 to 548 in just one day after increasing from 520 to 553 between March 18 and March 30. Those holding between 100 million to 1 billion DOGE decreased from 137 to 133 in the last day. It reached its peak of 140 on March 24.

This reduction in whale holdings could point to profit-taking after the recent DOGE price jump. While such selling by major holders can lead to an increased supply on the market, potentially putting downward pressure on prices, the current price trajectory suggests that other market forces are buoying the value of DOGE.

This divergence implies that the market may not solely hinge on the actions of these whales and could be entering a more complex phase of price discovery.

ADX and SAR Metrics Show DOGE Trend Could Change Soon

As we will see in the DOGE 4H price chart, its EMA lines are still bullish. However, other metrics, such as ADX and SAR are showing that this trend could be reverted soon.

A notable shift has occurred with the SAR (Stop and Reverse) indicator. After a week of dots positioning below the price candlesticks, suggesting an uptrend, the SAR dots have now appeared above the candlesticks. This movement typically signifies a potential trend reversal to the downside.

The ADX (Average Directional Index), a tool used to measure the strength of a trend, is concurrently registering a value of 33.9. This figure indicates a moderate trend strength; while not weak, it’s not indicative of a very strong trend either.

The appearance of SAR dots above the price candlesticks can often be a warning sign for traders that the previous upward momentum is losing steam and that a downward price movement might be on the horizon. The ADX value of 33.9 corroborates this, suggesting that while the current trend has some conviction, it might not have enough force to sustain a new surge in DOGE price.

Together, these two metrics suggest that DOGE might not be primed for an imminent price rally. The market may instead be entering a phase of consolidation or could be on the brink of a bearish trend as investors and traders re-evaluate their positions in response to these signals.

DOGE Price Prediction: It Can Reach $0.30 Anytime Soon?

The DOGE price chart is currently exhibiting a bullish signal with its Exponential Moving Average (EMA) lines, as all short-term lines have positioned themselves above the long-term lines, indicating an upward momentum. However, this optimistic trend seen in the EMA lines might face challenges, as other significant metrics like the ADX (Average Directional Index) and SAR (Stop and Reverse) hint at a possible reversal of this trend soon.

EMA lines are a moving average that places a greater weight and significance on the most recent price data, making them particularly useful for identifying the direction of the trend and potential reversals more quickly than simple moving averages (SMAs).

If DOGE’s price indeed enters a consolidation phase, it is expected to oscillate between $0.17 and $0.20, finding stability within this range. Should a downtrend materialize, the next significant level of support to watch would be at $0.12, indicating a considerable retracement.

Conversely, if the market sentiment shifts towards a more bullish outlook, an attempt to break through the $0.29 resistance level could be on the horizon, potentially ushering in a new phase of upward momentum for DOGE.

The post Here Is Why Dogecoin (DOGE) Won’t Reach $0.30 Soon appeared first on BeInCrypto.

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