Dogecoin’s (DOGE) price is bound to note a recovery; the question remains whether it can manage to chart gains as well.
This may be difficult considering the uncertainty noted amongst the large wallet holders.
Dogecoin in the Air
Dogecoin’s price fell through the descending wedge pattern. It had been moving in since April, and it is now attempting to reclaim it. Since the pattern is a bullish reversal pattern, the lingering bullishness prevented major losses for the meme coin.
According to the Global In/Out of the Money (GIOM) indicator, about 35.27 billion DOGE was bought between $0.105 and $0.114. This supply worth close to $4 billion would have lost its profitability had DOGE slipped below $0.105, which coincidentally happens to be a critical support for the meme coin.
Read More: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?
However, as the crypto asset attempts recovery, it could find resistance in the form of whale selling. These large wallet holders have been attempting to offload their holdings since the first week of the month.
In the last nine days alone, addresses holding between 10 million and 100 million DOGE have witnessed a decline of 400 million DOGE. The total value of this supply is $44.8 million, meaning the meme coin has already suffered this loss.
Plus, since the altcoin is not rallying at the moment, it is clear that this was a move to offset losses. This is a sign that Dogecoin’s price might find some difficulty in noting a recovery.
DOGE Price Prediction: More Barriers
Dogecoin’s price, fighting the bears, has climbed back up to trade at $0.112. The next crucial resistance for the meme coin lies at $0.116, breaching which would put DOGE back in the bullish reversal pattern of a descending wedge.
Per this pattern, the target sits at $0.220, which would warrant a 74.46% rally. This certainly is a result that we won’t be seeing for a while, but combined with the aforementioned cues, DOGE might find it struggling to breach $0.128.
Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030
If the line is breached the bullish pattern would be validated. But if the breach fails, a drawdown to $0.116 is possible again and losing it again would invalidate the bullish thesis. This would bring DOGE back down to the current price.
Disclaimer
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