Dogecoin price slips for three straight days as the weakness among most altcoins continues. Its pullback mirrors that of other popular meme coins like Shiba Inu, Floki, and Dogelon Mars. Now, with 5.8 billion DOGE coins suddenly moving, can the coin resume the uptrend?
Dogecoin Sentiment Flips Negative
Dogecoin price remains in a consolidation this month. It slipped to a low of $0.3787, down by almost 20% from its highest level this month. This retreat has pushed some investors to start selling their coins as profit-taking continues. Third-party data shows that DOGE sentiment has now moved to the negative zone.
This is a big reversal since the sentiment index jumped sharply in November as the coin surged to a multi-year high. More data also shows that the crypto fear and greed index slipped to 80, from the year-to-date high of above 90. This is a sign that these jitters are spreading.
5.8 Billion DOGE Tokens End Hibernation
Ali Martinez, a technical and on-chain analyst, notes that this consolidation has triggered major movements in Dogecoin. He identified about 5.8 billion tokens that changed hands in the last 24 hours, a move that investors are starting to take profits.
Besides, DOGE price was up by almost 500% between its lowest level in July and its November highs. Many crypto traders often sell their coins when a major bull run ends or pauses.
Dogecoin Price Analysis: Short-term Outlook Remains Uncertain
Dogecoin price remains in a difficult place, especially in the short term. According to Gonzo, a crypto analyst with over 12,000 followers, the coin remains in a difficult place, with the 100 exponential moving average at $0.4073 offering important resistance. The coin has also found crucial support at the 200-day moving average.
In this case, more downside will be confirmed if it drops below the 200 EMA level at $0.3833. Such a move would push it to the next key support level at $0.3660, its lowest swing on December 10. More gains will be confirmed if the coin moves above the 100-EMA.
Dogecoin Price Analysis: DOGE’s Long-term Outlook Remains Bullish
Technicals suggest that the long-term view for the Dogecoin price is bullish. The daily chart shows that the coin formed a golden cross pattern in November. This pattern forms when the 200-day and 50-day moving averages cross each other.
There are signs that the DOGE price is forming a bullish-flag-like chart pattern. This pattern is made up of a long vertical line and a rectangle pattern. In this case, the coin has faced support at the lower side of this pattern.
Therefore, there is a likelihood that the coin will have a bullish breakout. But this view will be confirmed if the coin moves above the year-to-date high of $0.4842. If this happens, it will raise the probability of the coin soaring to $1. Some analysts see the DOGE price soaring to $4 in the long term.
A drop below the lower side of the flag and the key support at $0.3660 will invalidate the bullish view and point to more downside.
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