Dogecoin Price Prediction as Rising Supply Pressure Hints 12% Fall

DOGE price experienced a noticeable dip on September 10th, breaking through a pivotal support trendline. Historically, this ascending trendline supported the coin’s recovery phase, making its breach a significant signal of a potential continued decline. However, recent buying pressures in the broader market seem to have derailed this trajectory, as DOGE turned sideways, nullifying its earlier breakdown. Can this trigger a fresh rally?

Also Read: What Next For Top Cryptos – Dogecoin, XRP, And Pomerdoge In 2023?

Is DOGE Poised to Hit $0.055 Mark?

• The DOGE price may witness aggressive supply pressure at the overhead trendline
• A bearish reversal from the resistance trendline will set the coin price for an 11-12% drop
• The 24-hour trading volume in the Dogecoin is $138.5 Million, indicating a 19% loss

Source-Tradingview 

The newfound support at $0.06 coupled with the broader market’s bullish sentiment, has led to a modest 5% recovery over the past week. Impressively, this bounce-back has nullified the bearish implications of the September 10th dip, highlighting the diminishing strength of the bearish trend. 

The current upswing is expected to rise another 3% gain from current levels of $0.062 which would position the Dogecoin price against a downward-sloping resistance line. This trendline has historically halted the meme coin’s bullish endeavors on three distinct occasions, reflecting its significance.

If the bear manages to establish dominance at the overhead trendline, especially around the $0.064 price level, we could expect the memecoin price to face renewed selling pressure. Under such circumstances, a potential decline of 11-12% could be anticipated, propelling coin prices towards the $0.057 region.

DOGE vs SHIB Performance

A look at the last three months’ price action shows the Shiba Inu price (currently trading at $0.00000761) is witnessing a steeper correction in comparison to the DOGE price since the latter part of August. This suggests that Dogecoin has demonstrated greater resilience during the recent market fluctuations. 

Moreover, this coin price wobbling close to a yearly support trendline indicates a better potential for a rebound.

• Bollinger Bands: The narrow range of the Bollinger Bands indicates prevailing market indecision.
• Vortex Indicator: The alignment of the VI+ (blue) and VI- (orange) in a bearish configuration suggests that the selling drive is currently dominant.