However, price developments could experience some difficulties depending on the moods of Dogecoin investors.
Pessimism prevails among Dogecoin investors
The value of Dogecoin is likely to continue its decline on the daily chart. This is even though we observe that medium and long-term holdings are going towards short-term holders (less than a month). A development that could threaten the short-term stability of this cryptocurrency.
During the month of June, the quantity of DOGE tokens held by short-term investors grew by 2 billion. Thus, price volatility could mark its comeback.
Generally, short-term holders hold their assets for less than a month. Due to these parameters, a bearish trend in Dogecoin could be a logical continuation.
Moreover, DOGE investor enthusiasm remains muted. The weighted sentiment has remained in negative territory for more than three months. As a result, this basically translates into an atmosphere of general caution and skepticism among major players.
This gloomy atmosphere drastically reduces the recovery opportunities for Dogecoin.
Read more: Here are 10 meme coins to watch in 2024.
Without the support of investors or a desire to preserve their assets for a long time, it is difficult to expect better for the price of Doge.
Price Predictions: A Pattern to Break
Dogecoin price is currently in a descending triangle at $0.124 at the time of analysis. This usually bullish chart pattern is formed by converging trendlines sloping downward. This suggests a potential reversal or upward breakout.
For memecoin to overcome the resistance set at $0.128 with which it has been struggling for a while, a significant rally targeting $0.300 would be necessary. However, this would imply a decisive breakthrough.
As mentioned, investors do not seem to be showing the required optimism. Thus, it is very likely that we will see a failure to break through the upper trendline or a consolidation between $0.128 and $0.116.
Learn more : how to buy Dogecoin, the flagship crypto memecoin?
If the bearish trend strengthens, Dogecoin price could plummet to lows of $0.105. Such a drop would invalidate the bullish outlook as well as the descending triangle pattern.
Moral of the story: Dogecoin is not out of the woods yet.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
