Can Dogecoin hit $0.07 despite rising bearish sentiment?

Key Takeaways

What’s behind the weakness in price of DOGE?

Losing the critical accumulation zone at $0.18 put the memecoin into a downturn.

Will Dogecoin hit $0.07?

Dogecoin could hit this price mark if bear conditions are extended for a longer period and bulls failed to defend accumulation zones before this zone.

Dogecoin’s [DOGE] price fell by almost 8% in the past 24 hours as of press time, with bearish sentiment continuing to surge.

The memecoin has been confined in a bear structure since hitting $0.30 mark, when more than 75 altcoins were performing better than Bitcoin [BTC]. The outlook now aligns with a potential crash to $0.07 zone.

Odds of DOGE falling to $0.07

As per Dogecoin’s UTXO Realized Price Distribution, the memecoin’s most critical level was at $0.18. This level serves as the make-or-break zone, where a sustained stay could take price toward the $0.07 zone.

The $0.07 zone served as the last price zone where DOGE tokens were moved.

About 28.28 billion DOGE, worth about 18% of the supply, was accumulated at this zone. This meant that it stood as the next most significant buy area.

Source: Ali Charts/X

The break below $0.18 sets the memecoin in a downward spiral. However, the less significant zone before $0.07 could also spark a rebound. More analysis including the price action detailed the next areas of interest.

Dogecoin faces resistance 

On the charts, DOGE was facing more sell pressure, with price breaking below the Ichimoku cloud on the 4-hour time frame. The momentum of the candles was an indication of the underlying sell-side liquidity.

Looking at the price targets on the charts, it suggested $0.1688 was the next in line. This was on the short term prediction.

To revert to bullishness, DOGE needs to breach the Ichimoku cloud resistance. Otherwise, bears would continue to dominate, taking prices back to previous year’s levels around $0.15.

This where Dogecoin started its move and almost hit $0.50.

Source: Trader Tardigrade/X

However, the charts did not back a move to $0.07 due to the existing structural support levels.

Additionally, CryptoQuant data showed derivative traders were starting to long the memecoin supporting the idea that the drop to $0.07 was way too far.

Bear sentiment on!

Bear sentiments were not over as spot traders continued to sell their tokens. The Spot Taker CVD showed sellers had been dominating the volume traded since late September.

In the meantime, the sentiment gauge showed both the crowd and Smart Money were all bearish. The readings were negative 0.31 and 0.24 indicating the informed money saw a more likely scenario for DOGE to drop.

Source: Market Prophit

Altogether, the decline in prices of Dogecoin could continue, though unlikely to hit $0.07 only if the bear market extended for a longer period.

In case the entire crypto market saw a shift, DOGE could reclaim the Ichimoku cloud resistance and reverse back to bull strength.