Dogecoin Price Analysis: DOGE Tumbles 4% as 75% of Holders are in Profit

The Dogecoin price has tumbled 4% today, with the DOGE/USD trading at $0.1205. It comes amid broad market weakness, with the meme coin sector’s market capitalization tumbling 4.6% to $49.2 billion, according to CoinGecko. 

Despite the plunge, its 24-hour trading volume has surged 13% to $680.53 million. The rise in DOGE’s trading volume shows intense activity among traders, suggesting confidence in the market. Moreover, data from Into The Block indicates that 75% of DOGE holders are in profit at the current price levels. This is a significant bullish signal as it reveals that the price may rebound amid this strong support from traders.

On the other hand, data from DefiLlama shows that Dogecoin’s total value locked (TVL) is $4.03 million, with $2,986 in fees collected in the past 24 hours. The current price is $0.12, and the market cap is $17.511 billion, which is almost its fully diluted valuation (FDV) of $17.512 billion.

Meanwhile, CrytoYapper, a well-known crypto analyst, has mentioned Dogecoin breaking the bearish wave. He has, however, mentioned on X that, “We need to see some strength for DOGE; otherwise, we will level around the $0.10.”

$DOGE Breaking Bearish 📉#DOGE broke down from the formation on the 4hr timeframe (Left)

However, on the Weekly chart, we can see #Dogecoin is back at critical support (Right)

We need to see some strength for $DOGE , otherwisew we will levels around the $0.10 https://t.co/LBJfanzaG9 pic.twitter.com/ud9tTuTjHF

— Crypto Yapper (@CryptoYapper) August 1, 2024

Dogecoin Statistical Data

Based on Coinmarketcap data:

• DOGE price now – $0.1205
• DOGE market cap – $17.53 billion 
• DOGE total supply – 145.35 billion
• DOGE circulating supply – 145.35 billion
• DOGE ranking – #8

Dogecoin Price Set for a Bullish Reversal

The Dogecoin price trades with a bearish bias, forming a falling wedge pattern. The falling wedge pattern is considered a significantly bullish reversal pattern, confirmed when the price breaks above the upper trendline.  DOGE’s price has been on a downtrend since mid-July after facing resistance at around $0.1425. This forced the price of DOGE to fall like a dead weight in the air. However, the bulls have established strong support at around $0.1195, acting as a cushion against downward pressure. 

To start with, the leading memecoin trades below the 50-day and 200-day Simple Moving Averages (SMAs). In this case, the $0.1211 and $0.1287 act as immediate resistance keys against upward movement. Notably, the Relative Strength Index (RSI) is below the 50-mean level. Currently, it’s hovering around the 32 oversold region, tilting the odds towards the sellers. 

In the same way, the Moving Average Convergence Divergence (MACD) indicator accentuates the pessimistic outlook for Dogecoin price as it capitalizes on a sell signal. Notice the MACD line in blue crossing below the signal line in orange. DOGE’s price action is likely to rebound, but the bulls must first deal with the technical barriers in the market. 

Dogecoin Price Future Outlook

According to the Dogecoin price analysis on the 4-hour chart, DOGE is set to rally soon. With the RSI showing that the asset is undervalued, buyers may initiate a buy-back campaign, which could push the price of DOGE up. The bulls are currently targeting $0.16.

However, if the bears continue selling, DOGE may breach the support level at $0.1195, which is a cushion against downward pressure. This could see the DOGE price revisit the lows of $0.10, last tested on July 13.