Dogecoin Price Analysis: Can DOGE Stabilize Around $0.08?

Cryptocurrency prices tumbled alongside the US stock market as fears of a hard landing spread following dovish economic data last. According to the latest Dogecoin price analysis, DOGE led the meme coins’ spiral, sinking down the rabbit hole before slowing at $0.08 support.

Last week the Federal Reserve left interest rates unchanged while fewer jobs than expected and contracting manufacturing activity fuelled fears of a recession.

Carry trades between Japan and US bond markets exacerbated the precarious situation, causing a massive sell-off. DOGE price escalated weekly losses by 31%, with its 30-day loss amounting to 15%.

Dogecoin Price Analysis: Can DOGE Rally After Sell-Off?

The Relative Strength Index (RSI) dived into the oversold region for the first time since early July as Dogecoin sought support at $0.08 and a reversal above $0.1.
However, a previous Dogecoin price forecast reveals that the crypto’s position below the 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs) somewhat disadvantage the bulls. Therefore, it is prudent for investors to prepare for a possible drop in price to $0.06 if support at $0.08 fails.

Based on Dogecoin price analysis, the token will start to move upwards as long as $0.08 support holds. Traders are expected to focus on buying dips this week, increasing the chances of DOGE climbing above $0.1.

Due to the falling wedge pattern, a larger breakout is anticipated. Dogecoin corrected, touching two lower highs and three lower highs. Connecting these points forms a falling wedge pattern, which may set DOGE out for a 78% breakout if validated above the upper trend line.

This target is determined by measuring the distance between the first swing low and the first swing high, which is then added to the breakout point. The wedge pattern could expose DOGE to higher milestones at $0.14 and $0.18 and pave the way to $0.22.

Soaring Exchange Inflows Keep DOGE Suppressed

As uncertainty intensified across global markets, investors moved their holdings to exchanges. According to the latest on-chain data by IntoTheBlock, more than 188.2 million DOGE was deposited on exchanges in August, adding fuel to the sell-off.

Usually, investors transfer tokens to exchanges intending to sell. On the other hand, they move coins to self-custody, intending to hold or stake them in the decentralized finance (DeFi) sector.

Exchange flows play an important role in crypto prices’ movements. If inflow volume increases this week, Dogecoin may be deprived of recovery momentum, allowing the downtrend to extend to the next key support at $0.06.

The IOMAP model below reveals that 56.4% of the entire DOGE supply is in the red, leaving only 42% in profit. About 1.88 of the supply holds at the breakeven point.

There’s a growing possibility of a recovery from $0.08, the current support level. However, bulls must brave tough resistance around $1, considering the 73k addresses that bought $8.27 billion DOGE in the range between $0.0994 and $0.01021.