- Dogecoin price mundane action may come to a sudden halt at $0.0600.
- Recovery will continue undeterred until DOGE meets immense seller congestion at the level.
- Diminishing network activity keeps bulls from achieving their target of around $0.0680.
Dogecoin price is at the tail end of its two-week downtrend from August’s high of $0.0892 to the primary support at $0.0600. Initially, the leading meme coin attempted to break out of a descending parallel channel, but the move was short-lived, ending at around $0.0720. Dogecoin price will have another chance to escape the stubborn channel if support at $0.0600 remains intact.
Dogecoin price shows a slight hope but will investors heed the call?
The Moving Average Convergence Divergence (MACD) indicator flipped in favor of DOGE’s recovery on August 29. This move confirmed an earlier buy signal on August 24, but at the time, investors were jittery about the bear market taking precedence.
Bulls may emerge winners if the MACD lifts above the mean line. The 12-day Exponential Moving Average (EMA) is required to sustain a bullish divergence above the 26-day EMA to reinforce the Dogecoin price optimistic outlook.
DOGE/USD four-hour chart
The descending channel’s upper trend line may influence the next step Dogecoin price takes. A sustained break above this resistance line will affirm the bulls’ presence in the market. The liquidity build-up from support at $0.0600 might propel DOGE price to the next rendezvous at $0.0680. It is worth mentioning that this bullish move could extend to $0.1000 if the trend does not falter when dealing with the seller congestion at the 100-day Simple Moving Average (SMA).
IntoTheBlock’s IOMAP model reveals that Dogecoin price has a relatively smooth path to $0.0680. Its imminent uptrend might stall at this price point if investors who purchased 44.44 billion DOGE tokens decided to sell as they break even.
Dogecoin IOMAP model
On the other hand, traders should be cautious as they maneuver the bear market. They must remember that support at $0.0600 is DOGE’s last line of defense. Otherwise, the largest meme token risks falling to June lows roughly at $0.0500.
Dogecoin Active Addresses Metric
From a fundamental point of view, Dogecoin price will struggle with upholding the uptrend to $0.0680 and $0.1000 due to dwindling network activity. As observed from the Daily Active Addresses on-chain metric, approximately 42,500 addresses are transacting on the protocol, down from 116,800 addresses on August 16.
This drop is significant to Dogecoin price because it makes it challenging for buyers to sustain upward momentum. This means that speculation has gone down, and most investors are taking a hands-off approach – probably until Dogecoin price cracks through the resistance at $0.0680.
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