Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Dogecoin looked poised for another breakout with prices ranging between key levels.
- Social dominance waned alongside on-chain transaction activities.
Over the past week, Dogecoin’s [DOGE] price action stalled between key Fibonacci levels. With memecoins such as Pepe [PEPE] and Shiba Inu [SHIB] experiencing large pullbacks over the past day, DOGE’s price managed to remain relatively stable.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
As the battle for supremacy rages on between bulls and bears, an improvement or decline in general market conditions could swing the advantage either way.
Bulls rebounded from key level but it lacked genuine demand
The sharp drop from the 23.6% Fib level ($0.0765) between 14 August to 17 August found support at the 78.6% Fib level ($0.0595). However, the bullish rebound from this level failed to push past the 61.8% Fib level ($0.0647). This has kept DOGE stuck between the 61.8% and 78.6% Fib levels.
With DOGE’s market structure remaining bearish on the higher timeframes, bulls will need a sustained rally to achieve significant results. A look southward showed the potential for bulls to rally from this level, as evidenced between early June to late July.
While bulls attempt to rally again, further bearish action could see DOGE sink to June levels of $0.0530. This will represent a 15% drop from the press time price level. A bullish breakout on the other hand could see bulls hit $0.06840 (50% Fib) or $0.0720 (38.2% Fib).
Despite the bullish rebound causing the Relative Strength Index to come out of the oversold zone, it still remained just above it with a reading of 31. The On Balance Volume didn’t see any notable movement too and extended its decline. Both indicators highlighted the lack of buying pressure and demand for DOGE.
Declining social dominance highlighted muted reaction to bullish rebound
With memecoins relying on crowd speculation for rapid price changes, the decline in DOGE’s social dominance painted a dim picture for bulls. Per Santiment, DOGE’s social dominance has been on a steady decline since late July.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
In addition, the 30d active addresses metric flatlined over a two-month period. This showed very little transaction activities happening, with monthly holders happy to sit on their holdings.
Together, this reinforced the bearish short-term sentiment, as a lack of bullish bids for DOGE was sure to see prices sink lower.