Dogecoin price plunged from $0.115 to $0.098 within a fortnight, registering a 14.6% loss. This bearish reversal within a falling wedge pattern indicates that traders’ sentiment continues to favor selling during price bounces. If the broader market experiences an extended correction in September, DOGE could break below the $0.091 support, further solidifying the sellers’ control over the asset. Will buyers mount a counterattack?
Dogecoin Price Ride Steady Downtrend Amid Wedge Formation
The Dogecoin price has consolidated between $0.115 and $0.093 for over a month. While the shorter timeframe shows this sideways action as a lack of initiation from buyers or sellers, the broader highlights a falling wedge pattern in play.
Under the influence of this pattern, the DOGE price fell from $0.228 to $0.097 within five months, registering a loss of 57%. Consecutively, the market cap plunged from $14.2 Billion. As the pioneer cryptocurrency Bitcoin price shows sustainability below the $60000 level, the bearish momentum in the altcoin market continues to mount.
If this dog-themed meme coin breaks below the $0.091 support, the selling pressure will intensify and plunge the asset 11.6% down to $0.8.
However, the on-chain metric MVRV (Market Value to Realized Value) Ratio of the past 30-day plunged to -3.59%, according to Santiment data. The negative value indicates that short-term traders are witnessing a loss in their investment and may exit from panic selling.
While the liquidation may cause initiation down, this signal often welcomes major players in the market to accumulate the discount price and drive the price higher.
Additionally, the In/Out of the Money Around Price (IOMAP) metric reveals that 1.74 million addresses collectively hold 17 billion DOGE up to the $0.105 price level, represented by three small red spheres. This suggests minimal resistance or supply pressure for buyers until the price reaches $0.11.
If the bullish momentum resumes, the Dogecoin price prediction could signal a 6-8% jump to the overhead trendline at $0.105, preparing a major breakout. Once buyers successfully breach the wedge resistance, the breakout market move accelerates quickly, potentially driving the asset toward the $0.15 target within 2-3 weeks.
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