Unpacking Dogecoin’s 8% decline – Better days ahead for DOGE’s price?

• 
  
  DOGE’s
  price
  dropped
  by
  more
  than
  8%
  in
  the
  last
  24
  hours 
• 
  
  One
  market
  indicator
  hinted
  at
  a
  trend
  reversal
  soon

Dogecoin
[DOGE]

recorded
a
major
price
correction
on
the
charts
in
the
last
24
hours.
While
DOGE
did
follow
Bitcoin’s
own
depreciation,
a
bearish
pattern
might
have
contributed
to
the
memecoin’s
devaluation
too.
Ergo,
let’s
take
a
closer
look
at
what’s
going
on
with
DOGE. 

Dogecoin’s
latest
disaster 

DOGE
bears
pushed
the
bulls
aside
as
the
token’s
value
dropped
significantly.
According
to

CoinMarketCap,
DOGE’s
price
dropped
by
more
than
8%
in
the
last
24
hours.
At
the
time
of
writing,
the
memecoin
was
trading
at
$0.1476
with
a
market
capitalization
of
over
$21
billion,
making
it
the
8th
largest
crypto.

AMBCrypto’s
analysis
found
that
this
recent
unprecedented
drop
was
not
unforeseen.
We
found
that
DOGE
was
already
moving
inside
a
rising
wedge
pattern,
which
usually
results
in
a
price
decline.
To
be
specific,
DOGE
started
to
move
inside
the
bearish
pattern
since
the
beginning
of
May,
and
it
made
its
bearish
breakout
yesterday.

Since
DOGE’s
price
lost
substantial
value,
people
started
to
talk
about
the
memecoin,
which
was
evident
from
the
rise
in
its
weighted
sentiment.
However,
it
was
surprising
to
note
that
while
the
memecoin’s
price
dropped,
its
weighted
sentiment
improved.
This
meant
that
bullish
sentiment
around
Dogecoin
increased
over
the
last
few
days.

Source:
Santiment

Is
DOGE
awaiting
a
trend
reversal?

AMBCrypto
then
had
a
closer
look
at
DOGE’s
state
to
better
understand
whether
the
rise
in
weighted
sentiment
would
result
in
a
trend
reversal.

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As
per
our
analysis,
DOGE’s
weighted
sentiment
dropped
sharply,
which
can
be
inferred
as
a
bearish
metric.
Nonetheless,
its
open
interest
also
dropped
along
with
its
price.
Whenever
open
interest
drops,
it
indicates
that
the
chances
of
a
trend
reversal
are
high. 

Source:
Santiment

We
then
analyzed
the
memecoin’s
12-hour
chart
to
better
understand
which
way
it
may
be
headed.

The
technical
indicator
MACD
displayed
a
bearish
crossover.
Its
Relative
Strength
Index
(RSI)
registered
a
sharp
downtick.
Additionally,
the
Money
Flow
Index
(MFI)
also
followed
the
RSI
and
moved
south.
These
indicators
hinted
at
a
further
price
drop
on
the
charts.

If
that
happens,
then
investors
might
see
DOGE
drop
to
$0.147.
A
fall
under
that
level
could
result
in
Dogecoin
dropping
to
$0.130. 

Is
your
portfolio
green?
Check
out
the

Dogecoin
Profit
Calculator

Nonetheless,
the
Chaikin
Money
Flow
(CMF)
seemed
pretty
bullish
on
the
memecoin
and
indicated
a
possible
trend
reversal.

If
that
turns
out
to
be
true,
then
DO
GE
might
rebound
soon
and
hit
$0.174
in
the
coming
days
or
weeks.

Source:
TradingView