Dogecoin Retests Macro Downtrend Line: Could a Bullish Reversal Be Imminent?

Dogecoin (DOGE) to $20? Analysts Predict a Staggering 7,900% Surge – Here’s Why

Recent analysis indicates that Dogecoin (DOGE) is experiencing a significant moment in its market trajectory, with a potential reversal from its macro downtrend.

Dogecoin Breaks Macro Downtrend and Retests Support

In Q1, Dogecoin broke out from its macro downtrend, which started from its 2021 peak. On March 5, DOGE surged to a multi-year high of $0.2054. This significant move marked the end of a prolonged bearish phase, ushering in a bullish era.

Since the breakout, Dogecoin has faced a major setback, reaching a low of $0.09379 early this month. Crypto trader and analyst Rekt Capital observed this retest phase, noting that Dogecoin’s macro downtrend line now serves as crucial support. If Dogecoin holds above this level, it would confirm the end of the macro downtrend and the beginning of a new uptrend.

Substantial Inflows Indicate Increased Market Interest

Source| IntoTheBlock

Recent data from IntoTheBlock highlights substantial inflows of Dogecoin by holders, reflecting increased market interest. Over the past week, investors accumulated 800.95 million DOGE at a price of $0.139250. This figure translates to an 867.04% positive seven-day change in token inflows to Dogecoin wallets. This spike in inflows suggests heightened accumulation and buying interest.

Despite these inflows, DOGE’s price has fluctuated, currently standing at $0.136387, a decrease of 2.09% on the day of the snapshot. These accumulation trends and price movements illustrate the relationship between market demand and price action. On the other hand, substantial outflows from Dogecoin wallets over the past few months have correlated with the asset’s price decline, represented by the black line in the chart below.

Source| IntoTheBlock

Changing Course Towards a Bullish Trend

The data suggests that substantial sell-offs by large holders have exerted downward pressure on DOGE’s price in recent weeks. However, the trend is gradually changing course with the massive percentage surge observed in the seven-day inflow. At press time, Dogecoin trades at $0.1325. While this reflects a 5% decline today, the asset maintains an 8.28% gain in weekly performance.

In conclusion, Dogecoin’s retest of its macro downtrend line and the recent inflow spike suggest a potential bullish reversal. The increased market interest and accumulation trends indicate that Dogecoin could be building support for a significant upside. Monitoring these developments will be crucial for understanding Dogecoin’s future price movements.

Read Also: Dogecoin 24-Hour Price Analysis: (DOGE) Faces Resistance With a 5.06% Increase; What’s Next?

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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