With a 4 percent slip in the past four days, the Dogecoin (DOGE) price does not have the luxury of further downside if an uptober rally is to be realized in the coming few weeks.
The top meme coin is counting on Elon Musk’s support and the more than 5.8 million holders as the DOGE miners offload their reserves to rebalance their portfolios.
The top meme coin, Dogecoin (DOGE) has been trapped in a falling trend YTD with a decline of about 20 percent compared to this year’s opening price. After holding on to the support level of around $0.061 in the past few months, the Dogecoin price finally gave in to the heightened selling pressure emanating from the miners who have been offloading their holdings in the past few weeks.
According to on-chain data analysis from Santiment, the average Dogecoin trader that has been active in the past year is currently in losses, with the bearish outlook threatening to push lower before an imminent rebound.
From a technical standpoint, Dogecoin price continues to trade inside a symmetrical macro triangle that is fast approaching its tipping level. With crypto investors expecting a bullish outlook based on the high call bets in the Bitcoin options that expire at the end of this month, a possible Dogecoin rebound could be brewing amidst high liquidations in long traders. Moreover, FOMO traders continue to watch from the sidelines through notable holdings in stablecoins awaiting a short squeeze entry or a positive announcement from tech billionaire Elon Musk.
Dogecoin Market Outlook vs Uptober Narrative
Dogecoin remains heavily inclined to the speculative aspect whereas other meme coins have been moving towards utility based. For instance, Ethereum-based Shiba Inu recently launched its layer two scaling solution dubbed Shibarium in a bid to support DeFi developers through complex smart contracts. Additionally, Baby Doge Coin (BABYDOGE), an upcoming meme coin with more than $11 million in WBNB liquidity, recently launched a generative AI to help its community interact with the network more.
Nonetheless, Dogecoin is largely bolstered by the high adoption by deep-pocketed investors seeking diversification from Bitcoin and Ethereum. As a result, Dogecoin price could largely mirror that of Bitcoin in the coming weeks if the latter enjoys its traditional uptober bullish narrative.
From a technical standpoint, Dogecoin price is likely to rally more than 100 percent in the coming weeks to trade above 10 cents. In this regard, the meme coin will have to regain the 50 and the 200 daily moving averages as support levels. Moreover, Dogecoin has been under the daily and weekly death crosses despite being in the oversold RSI region for months.
Bigger Picture
The Dogecoin price action continues to experience diminishing returns as with the rest of the mid-cap altcoins that are rated top 20 by valuation. Nonetheless, Dogecoin is favored among most crypto traders due to its deep liquidity, stable blockchain network that is secured by miners, and high throughput with lower transaction fees. Meanwhile, Dogecoin price is not likely to revisit its ATH until after Bitcoin’s fourth halving in April next year.
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