Can DOGE Stabilize Around $0.08?

Cryptocurrency prices tumbled alongside the US stock market as fears of a hard landing spread following dovish economic data. According to the latest Dogecoin price analysis, DOGE led the meme coins spiral, sinking down the rabbit hole before slowing at $0.08 support.

Last week the Federal Reserve left interest rates unchanged while fewer jobs than expected and contracting manufacturing activity fuelled fears of a recession.

Carry trades between Japan and US bond markets exacerbated the precarious situation, causing a massive sell-off. Dogecoin price escalated weekly losses by 31%, with its 30-day loss amounting to 15%.

Soaring Exchange Inflows Keep DOGE Suppressed

As uncertainty intensified across global markets, investors moved their holdings to exchanges. According to the latest on-chain data by IntoTheBlock, more than 188.2 million DOGE was deposited on exchanges in August, adding fuel to the sell-off.

Usually, investors transfer tokens to exchanges intending to sell. On the other hand, they move coins to self-custody, intending to hold or stake them in the decentralized finance (DeFi) sector.

Exchange flows play an important role in crypto prices’ movements. If inflow volume increases this week, Dogecoin may be deprived of recovery momentum, allowing the downtrend to extend to the next key support at $0.06.

The IOMAP model below reveals that 58.3% of the entire DOGE supply is in the red, leaving only 39.8% in profit. About 1.88 of the supply holds at the breakeven point.

There’s a growing possibility of a recovery from $0.08, the current support level. However, bulls must brave tough resistance around $1, considering the 73k addresses that bought $8.27 billion DOGE in the range between $0.0994 and $0.01021.

Dogecoin Price Analysis: Can DOGE Rally After Sell-Off?

The Relative Strength Index (RSI) dived into the oversold region for the first time since early July as Dogecoin sought support at $0.08 and a reversal above $0.1.
However, a previous Dogecoin price forecast reveals that the crypto’s position below the 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs) disadvantages the bulls to some extent. Therefore, it is prudent for investors to prepare for a possible drop in price to $0.06 if support at $0.08 fails.

Based on Dogecoin price analysis, the token will start to move upwards as long as $0.08 support holds. Traders are expected to focus on buying dips this week, increasing the chances of DOGE climbing above $0.1.

Due to the falling wedge pattern, a larger breakout is anticipated. Dogecoin corrected, touching two lower highs and three lower highs. Connecting these points forms a falling wedge pattern, which, if validated above the upper trend line, may set DOGE out for a 78% breakout.

This target is determined by measuring the distance between the first swing low and the first swing high, which is then added on the breakout point. The wedge pattern could expose DOGE to higher milestones at $0.14 and $0.18 and pave the way to $0.22.

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John Isige

John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.