Dogecoin (DOGE) price is moving within a bullish pattern, but bullish cues are needed for the meme coin to validate it.
This may be difficult since the investors’ behavior and sentiment do not seem to align with what is needed.
Investors Are Not Hopeful About Dogecoin
Dogecoin’s price could trickle further on the daily chart as the meme coin is noting a shift in the holding of its supply. DOGE is moving from mid- and long-term holders to short-term holders, which is raising concerns for the altcoin’s price stability.
Over the past month, the supply of DOGE held by short-term holders has increased by 2 billion, rising from 10.5 billion DOGE to 13.4 billion DOGE. This substantial increase highlights the trend towards short-term trading activity, which can introduce more volatility to the market.
Short-term holders tend to hold their assets for less than a month. This is why the conditions for Dogecoin could turn further bearish, as these holders tend to sell rapidly.
Additionally, DOGE investors have not been particularly optimistic. The weighted sentiment has remained negative for nearly three months, reflecting a prevailing sense of caution and pessimism among market participants.
This sustained negative sentiment further diminishes the likelihood of a recovery for DOGE’s price.
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Without a shift in investor outlook, the chances of reversing the current downtrend appear slim.
DOGE Price Prediction: Breaking the Pattern
Dogecoin’s price is within a descending wedge at $0.124 at the time of writing. A descending wedge is a bullish technical chart pattern formed by converging trendlines sloping downward. It typically indicates a potential reversal or breakout to the upside.
This would require DOGE to first breach the resistance at $0.128, which it has been struggling with for a while now. While the pattern does suggest a massive rally, targeting $0.300, it would warrant a breakout.
This breakout could be delayed since the investors are not exhibiting the necessary bullishness right now. The likely outcome will be a failed breach of the upper trend line or consolidation between $0.128 and $0.116.
Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030
On the off chance that the bearishness intensifies, Dogecoin’s price could drop to the lows of $0.105. Losing this would invalidate the bullish thesis as well as the falling wedge pattern.
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