- DOGE has declined by 6.78% over the past seven days, as bears dominated.
- Dogecoin was retesting a key support level around $0.1667.
Over the past week, Dogecoin [DOGE] has experienced strong downward pressure. In fact, as of this writing, Dogecoin was trading at $0.1667, marking a 3.33% decline over the past day.
This bearish outlook extended to the weekly charts, dropping by 6.78%.
The sustained price decline has left key stakeholders and analysts talking over Dogecoin’s future trajectory. Inasmuch, popular crypto analyst Ali Martinez has suggested a potential price rebound to $0.183.
Source: X
Martinez observed that Dogecoin was testing a key support level around $0.167 at press time. If this support holds, it will spark a strong rebound towards $0.175 and even rally to $0.183.
Based on this analogy, DOGE needs a close above $0.1667, a level that seems out of reach, as the memecoin has struggled to successfully hold above it for the past three days.
Can Dogecoin rebound?
According to AMBCrypto’s analysis, DOGE was experiencing strong downward pressure at the time of writing, amid bearish sentiment and low network activity.
For starters, Dogecoin’s Weighted Sentiment held within negative territory over the past three days. A negative Weighted Sentiment indicates strong bearishness among market participants.
As such, most participants have a negative perception of the memecoin and expect prices to depreciate even more.
Source: Santiment
This bearishness has forced most traders and investors to take a step back in the market. Inasmuch so, Dogecoin’s network activity is sharply dropping as well.
Looking at the price DAA divergence, this metric has remained negative over the past seven days.
Source: Santiment
A negative price DAA implies that network activity is relatively low relative to current prices. As such, even though prices are declining, network activity has dropped at a faster rate, leaving prices higher.
Thus, Dogecoin’s prices are not backed by actual demand, and for price stability, the memecoin needs to drop.
Source: Santiment
With most market players bearish, they were aggressively shorting the memecoin. Looking at the DyDx Exchange Funding Rate, it has held within negative territory over the past week.
With short dominating, it implies that investors expect prices to drop further.
What’s next for DOGE?
At press time, downward momentum appeared to be strengthening. This was evidenced by the declining RVGI, which has dropped to -0.12.
Since making a bearish crossover, RVGI has dropped strongly to a negative value. Such a drop reflects strong downward momentum, with the memecoin closing with lower lows.
Source: TradingView
If the downtrend continues amidst strong bearish sentiment, we could see DOGE drop even further.
A continuation of the trend will push the memecoin further downwards, and it will find support around $0.161.
For the levels predicted by Martinez to hold, buyers need to displace sellers who are currently attempting to take over the market.
Therefore, Dogecoin needs external factors such as good macroeconomic reports or favorable rate cuts to incentivize buyers to return to the market. Such development could propel DOGE towards $0.178.
