- The EMAs formed a death cross, indicating that DOGE could fall below $0.12.
- The 90-day MCA rose, suggesting selling pressure on the coin.
On April 27, Dogecoin [DOGE] It attempted to revisit $0.17, but the 4-hour chart showed that the resistance at $0.15 suspended the move. As a result, the price of the coin fell to $0.14.
But Dogecoin’s challenges appear to be more than just rejection. AMBCrypto found this after checking the exponential moving average (EMA). For those who are not used to it, the EMA measures the direction of the trend over a period of time.
No buyers in sight
According to our analysis, the 50 EMA (yellow) crossed the 20 EMA (yellow) on April 24, hinting at a bearish trend. Since then, the EMA positions have not changed.
This trend is also known as a death cross, which means that the DOGE price has a greater tendency to face a sharp decline. correction. Confirming the potential was the Elder Force Index (EFI).
The EFI tracks buying and selling activity in the market. At press time, the EFI on the DOGE/USD 4-hour chart was flat, indicating a massive lack of Dogecoin trading activity.
Furthermore, the Fibonacci indicator suggested a possible DOGE drop. This was due to the position of the 1.618 Fib level, also called the golden ratio.
At the time of writing, the 1.618 Fib was positioned at $0.12. This gave a hint that Dogecoin’s next support could be in the region. If the bulls can defend the support, DOGE could rebound and head towards $0.16.
However, if the bears’ $0.12 support is not protected, the coin could end up falling to $0.10. Despite the DOGE drop, on-chain data showed that 76.66 of the total supply made profits.
Playoffs hit DOGE
This relationship could be related to the performance of the coin over 90 days. According to AMBCrypto market evaluation, the price of the coin increased by 83.65%.
A big profit offering is not always a good sign for cryptocurrencies. This is because there is a high probability of some participants taking profits, especially at a time when the previous bullish momentum has slowed.
If this happens, the price of DOGE could fall below $0.12 and the bid in profit could fall below 70%. According to the Middle Age of Coins (MCA), Santiment data presented that the metric skyrocketed.
The MCA is the average age of all tokens on the blockchain. This metric correlates with price. If the MCA decreases, it means that many new coins have been accumulated and sent to cold wallets.
Realistic or not, here is the market capitalization of DOGE in terms of BTC
If this were the case, DOGE’s short-term prediction would line up with an increase. But the age of the coins was high, indicating that many ancient coins had been moved.
At the price, this suggests selling pressure and the move could coincide with a sell-off in assets.
Next: Bitcoin: $75,000 or $55,000? This is where BTC will go next
This is an automatic translation of our English version.
