Dogecoin: Assessing if DOGE’s $0.088 bounce can hold as whales sell

Dogecoin has been under extreme bearish pressure since it fell below the $0.1 level. Amid this downward spiral, DOGE broke below the $0.09 support level and fell to a low of $0.088 before rebounding slightly. 

At press time, the memecoin traded at $0.092, up 2.56% on the daily charts, indicating the memecoins’ heightened volatility. 

Dogecoin retail activity dries up

The broader crypto market saw reduced capital flows, and memecoin tokens, especially Dogecoin [DOGE], suffered the most. 

With investors taking a step back, amid dominating risk-off sentiment, small-scale investors have almost abandoned the market entirely.

Spot Retail Activity metrics from CryptoQuant showed no notable retail trading activity. The metric currently sits at neutral levels, indicating that retail traders have shown little excitement or panic. 

The cohort sat on the sidelines as of press time, potentially waiting for suitable market conditions either to dump or purchase. 

The same market sentiment is evident in the Spot Volume Bubble Map. The metrics remain within the neutral zone, suggesting the market lacks significant upside or downside momentum. 

These conditions leave the market prone to high volatility, depending on any significant moves made by market participants.

On top of that, while retail activity has dried up in the market, whales are left to roam freely, and long-term whales have increased spending significantly. Since DOGE fell below $0.1, whales have remained relatively active.

Spot Average Order Size data showed an increase in whale orders executed at $0.089. $0.093 and $0.091, and most of these orders have been the sell side.

With whales active on the sell side and retail investors silent, the market remains weak, increasing the chances of a further price drop.

Is all lost for DOGE?

Dogecoin rebounded from a $0.088 slip as buyers stepped in and bought the dip, lifting the memecoin to $0.092. In fact, the Buy Volume rose to 304 million, compared with 263 million in the Sell Volume.

The demand boosted the price performance of memecoins. Despite this short-term pump, the market remained structurally bearish.

The Relative Strength Index (RSI) made a bullish move, rising to 34, but it still remained deeply within the bearish zone, almost oversold. Likewise, DOGE held below its Parabolic SAR, further validating this weakened market structure.

Such market conditions suggested that Dogecoins are most likely to see a prolonged period of weakness. To avoid this fate, the memecoin needs to reclaim and flip its SAR at $0.103.

However, if the buy pressure on daily timeframes slows, DOGE could attempt to slip below $0.08, with $0.079 acting as key support.

Final Summary

• Dogecoin breached $0.09 support and fell to a low of $0.88 before rebounding to $0.092.
• DOGE retail investors have taken a step back from the market, amid a prolonged stay below $0.1.