Dogecoin (DOGE) Price Analysis: Can DOGE Rally After Sell-Off?
- PHPzOriginal
- 2024-08-06 03:02:07833browse
Cryptocurrency prices tumbled alongside the US stock market as fears of a hard landing spread following dovish economic data last. According to the latest Dogecoin price analysis
Cryptocurrency prices fell sharply on Monday, tracking a decline in the US stock market as fears of a "hard landing" grew following lackluster economic data last week.
Among meme coins, Dogecoin led the decline, as per the latest Dogecoin price analysis. However, the token found some support at the $0.08 level, slowing its descent.
"Hard landing" fears rose after the Federal Reserve left interest rates unchanged last week and data showed fewer jobs created than expected, while manufacturing activity contracted.
Carry trades between the Japan and US bond markets also worsened, leading to a sell-off in both markets.
Dogecoin price extended its 31% loss over the past seven days, adding to a 15% decline over the last 30 days.
Rising Exchange Inflows Keep a Lid on DOGE Price
Amidst the broader market uncertainty, a large volume of tokens were moved to exchanges by investors.
The latest on-chain data from IntoTheBlock showed over 188.2 million DOGE was deposited on exchanges in August, contributing to the sell-off.
Typically, investors transfer tokens to exchanges with the intention to sell. Conversely, they move coins to self-custody intending to hold or stake them within the decentralized finance (DeFi) sector.
Crypto prices are heavily influenced by exchange flows. If the volume of inflows rises this week, Dogecoin price may struggle to gain recovery momentum, potentially extending the downtrend to the next key support at $0.06.
The IOMAP model, shown below, indicates that 56.4% of the total DOGE supply is underwater, while only 42% is in profit. Around 1.88% of the supply is at the breakeven point.
There is a growing possibility of a recovery from the current support level at $0.08. However, bulls will face strong resistance around $1, where 73k addresses purchased $8.27 billion of DOGE at prices ranging from $0.0994 to $0.01021.
Dogecoin Price Analysis: Can DOGE Mount a Recovery After Sell-Off?
The Relative Strength Index (RSI) dropped into the oversold zone for the first time since early July, as Dogecoin price found support at $0.08 and attempted to reverse from below $0.1.
However, as highlighted in a previous Dogecoin price analysis, the crypto's position below the 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs) puts the bulls at a slight disadvantage.
Hence, investors should be prepared for a potential price drop to $0.06 if support at $0.08 fails to hold.
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