DOGE’s accumulation may be hollow given its movement in this direction

Posted: September 27, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• DOGE slipped below $0.063, a support level that stretched back to March
• Failure to defend the bullish OB from June could send DOGE tumbling once more

Dogecoin [DOGE] slipped beneath the $0.063 support level once more and retested the level as resistance last week. The meme coin had a large social presence last week and landed in LunarCrush’s top ten for last week

Read Dogecoin’s [DOGE] Price Prediction 2023-24

Yet this social engagement did little to drive demand for the coin. Its price action discouraged short-term bulls, but it was also trading within a higher timeframe support zone.

The three-month-old bullish order block was yet to be breached- can the DOGE bulls keep it that way?

Source: DOGE/USDT on TradingView

On 14 June, Dogecoin posted a bearish candle on the daily timeframe. A rally to $0.083 followed in the weeks after this event, marking that candle as a bullish order block. The sharp drop on 11 September dipped below this zone, but Dogecoin was yet to see a daily session close below the order block.

Hence, until that occurs, bulls can be hopeful of a recovery. Yet the indicators did not show such a move was around the corner. The Relative Strength Index (RSI) remained below neutral 50 over the past month and showed a downtrend was in progress.

The Directional Movement Index (DMI) showed this downtrend was strong as both the Average Directional Index (ADX) (yellow) and the -DI (red) were above the 20 reading. Meanwhile, the Chaikin Money Flow (CMF), which saw a jump earlier this month, fell toward 0 to show a lack of significant capital inflow to the Dogecoin market.

The rising mean coin age would give long-term buyers hope

Source: Santiment

The positive Market Value to Realized Value (MVRV) ratio showed that the memecoin was overvalued and holders could take a profit on the token in the coming weeks. This was not an immediate threat to the bulls, but the weighted sentiment would likely keep them worried.

Realistic or not, here’s DOGE’s market cap in BTC’s terms

The sentiment metric has been negative for a month and showed that engagement online around Dogecoin has been in favor of the sellers. However, the 180-day mean coin age has been in a strong uptrend since June. This indicated network-wide accumulation of DOGE- but is it enough to keep the bears at bay?