- An analyst predicts that DOGE could face further declines, supported by the downtrends of Solana, Ethereum and other major projects.
- A massive transfer of 1.74 billion DOGE to Robinhood raises fears of potential selling, influencing market sentiment.
Dogecoin (DOGE) has been trading through a complicated phase defined by resistance and changing market sentiment. The current state of DOGE is clarified by a new analysis by famous crypto analyst Alan Santana on TradingView.
Santana writes that DOGE saw a downtrend following notable opposition in May. August saw a change in this trend as a bullish wave surfaced, pushing the price towards this resistance level, highlighted on the charts with a strong orange line.
Possible scenarios for DOGE Next Move
DOGE surpassed its previous high during the recent price action, which triggered stop-loss orders and a flood of selling. The dark red indication of the start of consolidation on the last three-day candle clearly shows this massive sell-off. From there, Santana lists two possible situations that could develop.
The first scenario corresponds to the actions of late October, when a few sessions resulted in a bullish surge and a rapid reversal. Santana leans towards the second scenario, which implies that a possible drop in prices is already the result of the exhaustion of optimistic momentum.
Broader market trends affect Santana’s propensity to adopt the second scenario. He highlights how his latest analysis on major cryptocurrencies like Solana and Ethereum shows. This sentiment is repeated in several small and large companies with bearish chart trends.
Additionally, low trading volume supports expectations of a market correction ahead of the expected bull market in 2025. Based on current chart data, Santana says such price declines are expected due to the state of the market.
Adding to this cautious view, the CNF had previously note on a notable transaction involving the transfer of 1.74 billion DOGE to Robinhood, indicating possible selling pressure. Such mass movements often raise questions about their influence on market prices.
Despite this possible pressure, several analysts have a positive outlook on DOGE, especially since November has still produced gains, reinforced even by Bitcoin’s growing impact on market sentiment.
Meanwhile, DOGE is trading $0.1518 at the time of writing, a 5.34% decrease over the last 24 hours. Along with this decline, its market capitalization fell below $23 million.