Dogecoin has stabilized near $0.17 following a 4.6% decline, with a robust support zone establishing itself in the $0.166–$0.167 range.
Despite the recent downturn, a noticeable increase in large wallet accumulation alongside a reduction in macroeconomic challenges suggests the possibility of a bullish rally, especially if the price can break through significant technical resistance levels at $0.18, $0.21, and $0.36.
News Background
- The cryptocurrency market is currently traversing a challenging macroeconomic landscape, influenced by escalating trade disputes and altering central bank policies, which continue to exert pressure on risk assets.
- In this context, the temporary extension of the U.S. “Liberation Day” tariff pause until August 1 has offered some respite. Furthermore, key banking institutions are predicting Federal Reserve rate cuts ranging between 0.25% and 1% as early as July.
- In a development that has captured significant attention, Elon Musk recently announced The American Party, a political initiative speculated to involve blockchain-powered finance, sparking renewed interest in Dogecoin, particularly among substantial investors.
- Data indicates a staggering 112% increase in Dogecoin accumulation by large investors, despite a concurrent dip in retail interest.
- Market analysts are observing that DOGE may be forming a multi-year cup-and-handle pattern, suggesting that a confirmed breakout could see price targets rise to as much as $0.75.
- At present, while DOGE remains below resistance levels, it is displaying early indications of bullish reaccumulation at critical support.
Technical Analysis
- Analyzing recent price movements, DOGE fell from $0.174 to a low of $0.166 over a 24-hour period from July 7, 05:00 to July 8, 04:00, translating to a decline of 4.6%.
- During trading hours on July 7 between 13:00 and 16:00, strong volume-driven support emerged within the $0.166–$0.167 range.
- The price stabilized and saw a modest recovery to $0.168 toward the end of this period, with decreasing volatility indicating potential exhaustion of the downward trend.
- Additionally, between July 8, 03:38 and 04:37, DOGE exhibited a notable hourly recovery from $0.1672 to $0.1680, highlighted by a key breakout between 04:29 and 04:31, supported by a robust volume of 4.1 million.
- A higher low was established at $0.1679, suggesting a potential shift in market momentum and laying the groundwork for short-term bullish continuation.
