Dogecoin holds its breath. Stuck around the psychological level of $0.21, DOGE could be at a crucial turning point. With accumulation, strong support, and conflicting signals, the upcoming days will be critical for fans of this memecoin. Analysis.
The price of Dogecoin (DOGE) has been on a downward trend in recent weeks, breaking below the May low. However, some indicators suggest the possibility of a short-term trend reversal.
After experiencing 58% gains during the second week of May, Dogecoin fell back below its previous floor on June 20th. A recent analysis by AMBCrypto highlighted the parabolic upside potential of memecoin, suggesting that the gains in April and May may have been just a prelude.
Net Dogecoin exchange flows have been negative for two weeks, indicating an accumulation phase. Additionally, Dogecoin Days Destroyed (CDD), reflecting the volume of old coins being traded, have seen occasional spikes but no sustained trend, making it too early to suggest significant distribution.
The Cost Basis Distribution (CBD) heatmap reveals that the $0.182 to $0.211 zone has multiple resistance bands. If Dogecoin manages to break above this threshold, it will need to overcome investor pressure looking to sell at their entry price.
Despite falling below significant demand levels, Dogecoin has previously managed to rebound a few months later. A similar scenario could unfold in the coming months, especially as recent exchange outflows indicate an accumulation phase.
Breaking the $0.21 threshold will be crucial for the Dogecoin’s future direction. Investors should closely monitor this critical zone in the weeks ahead.
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