Dogecoin Short-Term Price Target – Is $0.12 Possible?
Dogecoin Short-Term Price Target – Is $0.12 Possible?
Journalist
- At the time of publication, Dogecoin seemed to be on the verge of breaking a key support line.
- On-chain metrics reveal a clearly negative sentiment in the market.
Dogecoin [DOGE]At the time of publication, it was trading near the lower edge of its horizontal channel. It has been trending in this direction since April 13.
When the price of an asset consolidates in a certain range for a long period of time, a horizontal channel forms. The upper line of this channel represents resistance, while the lower line represents support. The bears created resistance for DOGE at $0.17 while the bulls supported the coin’s value at $0.12, thus forming a long-term base.
The DOGE bears are in charge.
If bulls fail to hold this support level, DOGE could fall to new chart lows. This would indicate that the market is inundated with selling activity.
Some on-chain metrics suggested this could happen. Sentiment towards the memecoin has been mostly negative since March 31.
This metric measures how the market feels about an asset. If it returns a negative value, the market for an asset is overwhelmed by negative sentiment and its price is likely to fall.
DOGE’s sentiment weight was still below zero at press time. It was -0.17. The price of the memecoin will fall if sentiment remains poor. It could fall below its support level.
Overall demand for DOGE has also fallen. According to the report, in the last 30 days alone, the daily average number of addresses that have made at least one transaction with the memecoin has dropped by 13%. Santiment.
To avoid further losses on their investments, DOGE whales have been gradually reducing their exposure to the memecoin over the past month. According to data from IntoTheBlock, DOGE’s daily transactions have decreased significantly over the past 30 days.
Over the past month, DOGE transactions between $100,000 and $1,000,000.00 have dropped by 46%. The number of larger transactions between $1 million and $10 million has also dropped by 39.1% over the past month.
DOGE futures traders remain determined
Dogecoin futures traders are largely bullish despite Dogecoin’s poor performance.
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Coinglass’s assessment of the coin funding rate found that the funding rate has been positive for the past two months, apart from negative readings on June 18 and 19.
In perpetual futures contracts, funding rates are used to keep the contract price close to the spot price.
When an asset’s funding rate is positive, it indicates that there is greater demand for long positions. This means that more traders are buying the coins in anticipation of a price increase than those buying them in anticipation of a price decrease.
