The price of Dogecoin witnessed a devastating drop in the second trading week of November. A sweep-the-lows event might be imminent if the crypto bulls show up later. Key levels have already been defined to determine DOGE’s next possible move.
For now, the Dog coin seems to be facing some violent times. DOGE has seen better days as the notorious meme coin is down 50% in the month. During the US midterm elections on November 8, DOGE lost 30% in free-fall fashion.
In that context, the penny-from-Eiffel-style decline has some optimistic signs suggesting DOGE could recover. Nonetheless, on-chain metrics show a different scenario is in play. The Dogecoin price is currently at $0.081. The latest drop shows considerably less volume than the past uptrend rally. The Relative Strength Index (RSI) returns to the final levels of support after it breached the extremely overbought conditions in its 160% rally at the end of October.
Yet, the most worrying signals are also one of the subtlest. The strongest candle’s low in the recent uptrend has been breached. According to classical technical analysis, DOGE’s uptrend is now in jeopardy because of the breach.
On-chain metrics enhance the idea that DOGE’s demise is far from over. Santiment’s Whale Transactions Count >1M indicating a considerable uptick in movement. The indicator might suggest that the high-cap DOGE investors are no longer interested in holding the crypto. Moreover, they might be preparing to take profits in a countertrend rally in the weeks ahead.
Considering all these factors, DOGE might be due to more pain in the future. Traders might want to practice healthier risk management strategies as the market might be subjected to increased volatility. The next bearish targets are found at $0.06 and possibly the summer lows at $0.049.
For the bearish thesis to be invalidated, DOGE needs to rise past the $0.103 liquidity level. If that level is exceeded, DOGE might re-route north in the near term and rally towards $0.12. That move would result in a 55% increase from the current prices.
