Dogecoin Price Analysis: DOGE Volume Spikes A Bull’s Glimmer Of Hope

Dogecoin Price Analysis: DOGE Volume Spikes A Bull’s Glimmer Of Hope

  • Major resistance level: 31 satoshis if the first notable resistance, the major one is at 44 sats but that one is definitely out of reach for Doge in the short-term
  • Upside potential: breaking the 31 sats resistance and making it its new support
  • Downside potential: dropping back to the 27 sats or in case of a bigger sell-off to the 22 sats
  • Most likely scenario: no major moves, keep hanging in the tight area of 25-32 sats.

DOGE is currently at $0.0025 or 31 sats, being negative in the last 24 hours on the USD pair by 0.46% and 0.06 % respectively. Since DOGE price movements are highly susceptible to the market wide oscillations, we will first examine the total market cap before delving into the Dogecoin price analysis.

Total market cap analysis

Broad crypto market is stuck in the area between $220 and $230 billions. If we plot a chart of its price action, we can see that the market is hovering above a strong support area of $214 billion (data from Tradinview, off by approx $8 billion to CMC data). The price is squeezed between the EMA20 and horizontal support line at $216 billion. If we zoom out and throw a glance on the weekly chart price action, we can see that the price might touch on the Fib382 level at $205 before bouncing back up to the Fib50 at $240 billion. We need to take this into account before charting any individual coin price action.

DOGEBTC

  • Major support level: 27 satoshis
  • Major resistance level: 31 satoshis if the first notable resistance, the major one is at 44 sats but that one is definitely out of reach for Doge in the short-term
  • Upside potential: breaking the 31 sats resistance and making it its new support
  • Downside potential: dropping back to the 27 sats or in case of a bigger sell-off to the 22 sats
  • Most likely scenario: no major moves, keep hanging in the tight area of 25-32 sats.

On the 4H time-frame, we can see couple of volume spikes that sent Doge to the current height of 31 sats, right on the border of the sturdy resistance. The volume needs to be maintained if we are to see Doge detaching itself from this level, making the sturdy resistance to its new stable support level.

Trading volume and buy support

Trading volume is meager – reported volume in the last 24hrs is only $11m and “Real 10” (trading volume on the exchanges that provably prevent wash trading) volume is even lower – $3.8 million. This means that DOGE’s liquidity is highly inflated and overstated by 3x which indicates that a lot of the alleged interest in DOGE is manufactured and not organic.

On the other hand, DOGE comparatively has a solid buy support, according to coinmarketbook.cc. Buy support is measuring sum of buy orders at 10% distance from the highest bid price. This way we can eliminate fake buy walls and whale manipulation and see the real interest of the market in a certain coin. DOGE currently has a sound $4.5m of buy orders measured with this method, which sets DOGE buy support/market cap ratio at 1.44%, an above average value. Bitcoin and Ethereum have a 0.20% and 0.28% ratios, respectively. This novel metric indicates there are a lot of manipulations, inflated liquidity and fake orders on all crypto trading pairs, including DOGE pairs.

Article Produced By
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

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