Grapevine

Dogecoin Down 2% And Technical Analysis Says It Could Get Much Worse

Dogecoin‘s DOGE/USD bearish price action could spell more weakness, as traders see looming weakness on the charts.

What Happened: Crypto trader Kevin highlighted Dogecoin’s weakness on the weekly chart. After a failed breakout from a six-month falling wedge and a strong rejection at the 200-week simple moving average, a bearish engulfing candle is now forming, signalling a potential return to the falling wedge.

If this pattern holds, it could be one of the most bearish setups that Kevin has encountered.

The weekly time frame on #Dogecoin looks so bad I can't even put it into words. Massive failure breakout of 6 month falling wedge after getting a huge rejection off weekly 200 SMA and now we have a bearish engulfing candle forming on the weekly after entering back into the… pic.twitter.com/5WCgeO7rX0 — Kevin (@Kev_Capital_TA) October 2, 2024

Another crypto trader, Altstein Trade, commented on Kevin’s post, saying that the 200 SMA rejection was brutal and advising to reevaluate positions before the meme coin sinks deeper. He concluded, "Watching closely for any hope of a bounce, but not holding my breath."

Why It Matters: IntoTheBlock data shows large transaction volume increased by 10.3% and daily active addresses fell by 33.5%. Transactions greater than $100,000 are down from 439 to 303 in a single day. Exchanges netflows are down by 20.3%.

Coinglass data reports Dogecoin short liquidations at $217,500, the lowest level since Sep. 22.

Price Action: In the past 24 hours, DOGE is trading 1.9% down at $0.1043, bringing its seven-day losses to around 9%. The meme coin leader is up 4.4% over the past 30 days, underperforming its rival Shiba Inu, which has seen a 19% increase.

What’s Next: The influence of meme coins is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.