Dogecoin has recently experienced significant price fluctuations, with its value sliding to $0.12 on July 19, 2024. This drop represents an 8% correction over the last 48 hours. Analysts are now examining how recent trading activity among Dogecoin miners may have contributed to this pullback.
Dogecoin’s 40% Rally and Subsequent Correction
Over the past two weeks, Dogecoin’s price surged by an impressive 40%. This rally coincided with positive macroeconomic news in the U.S. and the rising popularity of crypto-friendly candidate Donald Trump in the 2024 Presidential Campaigns. However, the price rebound halted at the $0.13 level on July 17, leading to a steep decline since then.
Miner Activity Influences Price Movement
The recent sell-off by Dogecoin miners has raised concerns. On-chain data reveals that miners sold approximately 700 million DOGE between July 5 and July 19. Initially, miners held 4.44 billion DOGE, but this number has now decreased to 4.37 billion DOGE. This sell-off diluted the market supply, contributing to the 8% price decline in the last two days.
Resilience of Other Memecoins
While Dogecoin faced this correction, other memecoins like Shiba Inu (SHIB) and PEPE demonstrated resilience. They maintained their gains from earlier in the week, indicating that the overall memecoin sector remains strong despite Dogecoin’s struggles.
Technical Indicators and Future Outlook
As of July 19, Dogecoin trades at approximately $0.11969, showing a slight increase of 0.11% over the past day. The Relative Strength Index (RSI) sits at 50.07, suggesting a neutral market position. The Parabolic SAR dots indicate a bullish trend, as they are positioned below the current price level.
Traders should watch for resistance at $0.1212. If Dogecoin can break above this level, it may pave the way for further gains toward $0.13. However, the support level at $0.0965 remains crucial. If Dogecoin fails to hold above this support, it risks dropping to the $0.10 mark.
Read Also: Dogecoin (DOGE) 24-Hour Price Analysis: Will This Memecoin Breakout Above $0.13 Anytime Soon?
In conclusion, while Dogecoin shows potential for further gains, the recent miner sell-off and critical support levels will play a significant role in determining its short-term price trajectory. Investors should remain vigilant as the market evolves.
