DOGE Outlook; Long Positions Risky Amidst Consolidation

In the last week, there has been a 12% decline in the price of Dogecoin. However, market indicators show that in the coming weeks, the token’s price could climb above the $0.10 mark.

The last 24 hours saw the largest meme token in the market record a decline of 3.79%. At publishing time, DOGE was changing hands at $0.136.

The possibilities

Data from IntoTheBlock shows that the price of the original meme token is currently higher than a major on-chain support level.

Data shows that a total of 45 billion DOGE tokens were purchased at this level, with the average price being $0.11.

This shows that demand may be robust at this price, which means a decline below it is unlikely. But, there is strong resistance at a price of $0.16.

Holders bought a total of 20 billion DOGE tokens at this price. They might decide to sell their tokens to break even, which could prevent any upward movement.

The rising development activity of Dogecoin highlights the meme coin’s potential for growth. This metric measures the frequency of development events.

Data from Santiment shows that Development Activity on the public GitHub repository has increased significantly.

There was a rise in the index to 0.452 from 0.166 from June 11th to June 13th. This highlights ongoing efforts to improve, innovate, and maintain the protocol, which is considered positive.

Whale accumulation

Sentiment data also revealed that in the last seven days, whales purchased 900 million DOGE tokens.

The wallet addresses that made this purchase hold between 10 and 100 million DOGE tokens. Valued at $129 million, the accumulation hints at increasing confidence amongst large investors.

Historically, bullish market trends are preceded by such significant whale purchasing activity. This could potentially push up the price of Dogecoin.

Due to the latest buying spree, DOGE whale holdings have risen to 18 billion. Even though there is a downturn in the market, investors are taking advantage of the lower price to boost their holdings.

Market sentiment and price

Taking into account the current market sentiment and conditions, the price of the popular meme token in the short-term is expected to fluctuate between $0.12 and $0.15.

DOGE may not be able to record upward momentum if the negative sentiment does not ease off. But, the price could surpass the resistance level of $0.16 due to a rise in buying pressure.

There could be further gains in store for Dogecoin if it manages to overcome this resistance level. But, if there is an increase in selling pressure, DOGE could end up falling to the support level at $0.12.

A number of crypto analysts have taken a bullish stance towards the future price movements of DOGE.

They believe that if the meme coin breaks out from a descending pattern, it could record a significant increase in price.