Key Insights:
Dogecoin seems to be in trouble after a whale sold 119 Million DOGE, and the coin broke down below $0.1, its bull market base level.
If the top memecoin does not make a comeback above this level, it could plunge to $0.07.
Daily charts and hourly charts show that Dogecoin is in a breakdown phase.
However, analysts are still optimistic about a new ATH in Dogecoin around December this year.
The crash in Dogecoin prices on 4 September 2024 was mostly due to a sell-off triggered by an unknown whale on Robinhood. The mysterious user is believed to have sold off 119 million Dogecoins, plunging its price again below $0.1.
The level of $0.1 becomes essential for Dogecoin's holding because, without this, it might risk plunging 30% below the bull market base level of $0.1. Once it crashes below $0.1, the next imminent price level would be $0.07.
This would not only mean Dogecoin could sink below the bear market levels but also that DOGE would lose its memecoin market leadership. The divide between DOGE and SHIB remains $6 billion, which might soon be filled up as the latter prepares for a massive rally later this year.
On the late night of 3 September 2024, a whale sent 119 million Dogecoins to the Robinhood exchange. The transaction was sent from three Dogecoin blockchain addresses, and 119,675,999 (worth $11.61 million) coins were received at a Robinhood address. A smaller amount of 154,995 was sent to a separate address.
Though the amount seems low, yet it is enough to make Dogecoin crash another 30% because of DOGE’s weak price structure. The top memecoin has been weakened recently due to multiple market corrections and, at press time, had a price of $0.097. Below the $0.1 level, Dogecoin risks a fall because this level is its threshold to remain bullish.
DOGE/USDT Hourly Charts Obtained from Tradingview at Press Time
Tradingview
The hourly charts show that Dogecoin has been trapped between $0.093 and $0.1. Though this range seems narrow, it has trapped Dogecoin since 03 Sep 2024. The crypto has faced rejection once from this resistance but will make a second attempt late on 04 Feb 2024.
On the daily charts, Dogecoin seems in much trouble.
DOGE/USDT Daily Charts, 04 September 2024
Tradingview
The crypto must cross at least three resistances: $0.10, $0.112, and finally $0.14 before attempting to continue its bull run. A cross only above $0.2 could establish strong bullishness in Dogecoin.
Further, technical indicators have also shown a risky future for Dogecoin ahead. RSI has been neutral between 40 and 55 for a month since 08 August 2024. However, MACD indicates a positive crossover and a short recovery rally ahead.
On the same bullish note as MACD, some experts have been confident about a price reversal in Dogecoin.
A top Dogecoin analyst, Kevin, shows a chart showing Dogecoin in an accumulation phase before a large breakout. The expert expects an all-time high around December this year.
Kevin's chart shows that Dogecoin has had similar price corrections in the past, this being the fourth time. After each such phase, it easily managed to cross its resistances and showed a stellar rally. The analyst then asks the market to exercise some patience.
Dogecoin’s leadership status totally depends on its price behaviour this week. If it breaks down to $0.07, it will see a 30% loss in its market capital and could then fall below Shiba Inu’s market cap soon.
However, a breakout above $0.1 this week could raise hopes that DOGE might show the biggest rally of its life by the end of this year.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.