Following the recent downturn in the cryptocurrency markets, Dogecoin (DOGE) experienced significant selling pressure at the $0.22 level, resulting in a 20% price drop to $0.18. What are the experts’ expectations while some metrics show large gains for the popular meme token?
Metrics Indicate Dogecoin’s Decline
Dogecoin’s 4-hour chart showed a peak forming a double top pattern, reinforcing the bearish sentiment among investors. While Bitcoin continues its correction before the halving, there is speculation about whether this trend will extend the downward movement in altcoins. Unlike other leading cryptocurrencies, the popular dog-themed meme token, Dogecoin, exhibited an aggressive upward trend in March. The cryptocurrency saw a significant influx in the fourth week of the month, raising its value from $0.122 to $0.228, marking an 86.8% increase.
According to a recent statement by the cryptocurrency analytics platform Santiment, this growth was largely due to the awakening of large dormant whale wallets re-entering the market, which did not cause the typical FOMO that characterizes market peaks. Moreover, data shows a marginal increase of 0.21% in the number of DOGE-containing wallets over the past two weeks.
The Current State of DOGE
Dogecoin investments saw the average age drop from 510 days to 416 days within five weeks, indicating increased movement of long-held cryptocurrencies. However, with the current market correction, the DOGE price retreated from the $0.22 barrier and developed a double top bearish formation. With an intraday drop of 9%, sellers experienced a decisive break below the neckline support at $0.195. If the supply pressure continues, Dogecoin’s price could fall an additional 8%, reaching the combined support of the rising trend line and the 38.2% Fibonacci retracement level at $0.17.
