Summary:
– Dogecoin fell to $0.20, fluctuating between $0.23 and $0.20 amid intense selling pressure.
– Analysts identify support within a long-term channel and a wedge pattern targeting $0.265.
– Large investors acquired 310 million DOGE, with Bit Origin adding 40 million to its reserves.
Major Daily Drop for Dogecoin
Dogecoin (DOGE) experienced an 8% decline in the last 24 hours, slipping from $0.22 to $0.21. This marked one of the most significant daily decreases for the token this month. The price remained between $0.23 and $0.20, encountering resistance at the upper end and substantial selling near the session’s end.
Trading volumes spiked, reaching 1.25 billion DOGE at midnight, indicating significant liquidations and cascading sell orders from positions with leverage.
Currently, Dogecoin is valued at $0.20, reflecting an 11% decrease over the past week and resulting in a market capitalization of $31 billion.
Long-Term Channel Remains Stable
Trader Tardigrade presented a 1-month chart revealing DOGE within a long-term ascending channel that has persisted since 2014. DOGE frequently rebounds from the channel’s lower boundary, highlighted in pink on the chart.
Meanwhile, the current price is near the lower-middle section of the channel, an area previously associated with multi-month rallies when the trend persisted. Despite recent declines, Dogecoin’s long-term framework remains intact as it continues to trade within this ascending channel.
Trader Tardigrade also highlighted that Dogecoin’s monthly candle closed as the third successive bullish engulfing candle, suggesting a potential upward movement.
Short-Term Wedge Formation and Institutional Moves
Ali Martinez observed that DOGE might be forming a falling wedge on the 1-hour chart, with a target of $0.265. A rise above $0.229–$0.230 would indicate bullish momentum, while $0.215–$0.210 serves as crucial support if the wedge pattern does not hold.
Institutional investors acquired 310 million DOGE during the market correction, and Bit Origin increased its holdings by 40 million DOGE as part of a $500 million diversification initiative. Broader cryptocurrency markets face pressure from macroeconomic uncertainties, including inflation and equity risk, which are influencing short-term demand.
The original article “Dogecoin Slides 8% but Long-Term Channel Holds, Can DOGE Rebound?” appeared first on CryptoPotato.
