The cryptocurrency market has tried all ways to recover from ongoing bearish tendencies. However, selling momentum remains visibly steady, and the original meme coin, DOGE, might slump soon.
Though clear indications are yet to appear, Dogecoin might be staring at more red candlesticks within the upcoming few days.
DOGE’s New Outlook
Dogecoin could be headed back down a few days after declining to 14-month lows of $0.049. Such a development would discourage DOGE investors from partaking in the network as the price fall would erase the recent 46.23% upsurge.
The downside hints emerged from consolidations in the marketplace and DOGE’s retest of the downside trend-line that led to the 92% gradual plunge.
While publishing this news, the Parabolic SAR hovered at $0.07. That confirmed an active uptrend within the marketplace.
Nevertheless, the ADX (Average Directional Index) indicates fading uptrend steam. The latter indicator slipping beneath the 25.0 thresholds might overturn the uptrend to a downtrend. Prices will inevitably plummet amidst such actions.
Moreover, a bullish absence on the RSI (Relative Strength Index) won’t offer reliable support. That would devastate more than two million Dogecoin holders who have stared at losses for nearly a year. DOGE has had nothing much to incentivize its holder since 2022 started.
Transaction volume deteriorated to $1 billion from $10 billion this year. Further declines within the past three months saw Dogecoin holders moving around an average supply of $400 – $500 at most.
Besides that, DOGE has been encountering short liquidations of up to $1 million. The June 19 peak saw shorting contracts worth $5.71 million liquidated.
Therefore, the minimal investor support might mean enduring a challenging battle against the prevailing bearishness. DOGE investors may await another price dip soon. Dogecoin’s path with fewer resistances remains the downside.
The broad market outlook supports DOGE’s upcoming slide. Bears confirmed their presence overnight, dragging the overall crypto market capitalization 4.42% lower to $898.86 billion.
Also, Bitcoin hovers weakly at $20,076.10. Market players can expect new leg downs in the coming sessions or hours.
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