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Since July 17, the Dogecoin price has reached many higher highs, but it is currently showing weakness, indicating a trend shift. According to on-chain indicators, losing a major support level may result in a wave of selling pressure, sending DOGE down. Since July 17, the price of Dogecoin has been on a strong upswing, with purchasers setting two straight higher highs.
However, the swing high on July 26 at $0.233 appears to be the last one, as DOGE has declined nearly 13% from this point to where it presently trades.
Furthermore, the $0.213 resistance level has been acting as a key opposing force, preventing a move higher. The most recent rejection on August 1 appears to be causing a 10% pullback to the $0.183 demand barrier.
A definitive closing below this support floor will establish a lower bottom, confirming the bearish trend move. Such a move would pave the way for a $0.162 foothold, about 20% drop from $0.205. IntoTheBlock’s Global in/Out of the Money (GIOM) model backs up this large slump, predicting that a breach of the $0.20 level will send the vast majority of investors in the area beneath.
At an average price of $0.201, around 144,000 addresses bought 14.84 billion DOGE. As a result, if a key 9-hour candlestick closes below this barrier, these traders will be “Out of the Money.” This scenario may encourage holders to liquidate their holdings at breakeven, adding to the already gloomy position and driving the Dogecoin price lower.
Story By: Norvisi Mawunyegah