Last week, the price movement of Dogecoin (DOGE) stopped between important Fibonacci levels. While memecoins like Pepe (PEPE) and Shiba Inu (SHIB) experienced significant pullbacks, DOGE managed to remain relatively stable. As the battle between bulls and bears continues, any improvement or decline in general market conditions can turn the advantage in either direction.
Current Status of Dogecoin
The sharp decline between August 14th and August 17th from the 23.6% Fib level ($0.0765) found support at the 78.6% Fib level ($0.0595). However, the upward recovery from this level failed to surpass the 61.8% Fib level ($0.0647). This caused DOGE to remain trapped between the 61.8% and 78.6% Fib levels.
With the downward trend of DOGE’s market structure on higher time frames, bulls may need a continuous rally to achieve significant results. A downward look, as seen from early June to the end of July, showed the potential for bulls to rise from this level.
While bulls attempt to push the price higher, further downward movement may indicate a drop to the $0.0530 level seen in June. This could represent a 15% decrease from the current price level. On the other hand, a breakout of the upward trend could allow bulls to reach the $0.06840 (50% Fib) or $0.0720 (38.2% Fib) levels.
Despite the upward recovery that caused the Relative Strength Index to exit the oversold zone, it was showing a value of 31. The On-Balance Volume did not show any significant movement and extended its decline. Both indicators highlighted buying pressure and a lack of demand for DOGE.
Decreasing Social Dominance Highlights the Silent Reaction to the Recovery
With memecoins relying on crowd speculation for rapid price changes, the decrease in DOGE’s social dominance painted a cloudy picture for bulls. According to Santiment, DOGE’s social dominance has been steadily declining since the end of July.
In addition, the 30-day active address metric followed a flat line for a two-month period. This indicates minimal transaction activity and suggests that short-term coin holders are content with holding onto their assets. The lack of upward bids for DOGE may lead to price declines and strengthen the short-term downward trend.
