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Dogecoin Price Set For Retest Despite Large-scale Downward Trend

There is no end in sight for the price recovery of the first meme cryptocurrency as the market price metrics show how the value of Dogecoin continues to crash.

Ever since reaching its all-time high in May 2021, the price of Dogecoin has consistently declined, and the retracement, according to experts, is a result of several factors and the most critical of them is – the movement of investors to rival meme coin, Shiba Inu.

The meme token is primed to experience a temporary recovery before the downturn continues despite the reasons mentioned earlier.

Price of Dogecoin Falling Steadily

The last ten months have seen the DOGE price plummet by 85%, with no signs of slowing down soon. Last December was an unforgettable period in the history of the first meme cryptocurrency. The DOGE painfully lost a significant part of its market value and continues to decrease by breaking basic support levels.

The recent happening in the price action of Dogecoin is that it has managed to shatter the $0.127 threshold, thereby moving into the resistance zone. To confirm a flip, investors expect the price of Dogecoin to rally by 10% and subsequently retest it again.

The above may seem to be a short-term bullish move; it is a brief move that might be accompanied by the continuation of the downward trend that overcomes the Fair Value Gap (FVG), which extends from $0.12 to $0.7.

(DOGE/USDT 4-hour chart. Source:TradingView)

Further analysis to support the move is using the Global In/Out of the Money (GIOM) tool created by IntoTheBlock, which tries to show how the closest support zone is significantly more robust. Investors can expect the price to rise to $0.14, regarded as the average purchasing price of the 280,000 addresses that hold about 26.9 billion tokens.

Because the market players holding the tokens are doing so at a loss, any movement into the area would be met with massive selling pressure from investors attempting to free their assets. The result is that the price upturn for Dogecoin is set at $0.14.

How The Macro Angle Would Look Like

Analyzing the bearish forecast from the macro perspective points to a decline in the volume of transactions worth $100,000 or above over the last three months, which dropped from 3,000 to 700.

The 76% decline in transactions indicates that the whales are no longer interested in Dogecoin considering the current price and are pulling their investment out to wherever they find appealing.

As a matter of market performance, the downward trend further lends credence as to why the large-scale outlook for the meme token has been appearing bearish for some time.

Additionally, market forces can make or break a token’s value. Still, the most crucial aspect about the performance of many a coin is its relative stability, but Dogecoin has failed to sustain its price after the highs of May 2021.

The expectation is that Dogecoin can pull itself out of its present situation for the time being.

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