Dogecoin (DOGE) Price Analysis: Possible Breakout Above $0.1 or Imminent Reversal? 

Key Insights

• Dogecoin (DOGE) price action over the past week has been relatively flat, hovering between the $0.09 – $0.1 boundaries. 
• After a week of consolidation, the bears appear on the verge of gaining control, having mounted SELL orders for 720 million DOGE across crypto exchanges. 
• On-chain footprint of Dogecoin’s current holders’ historical entry price 

Dogecoin (DOGE) price continues to consolidate within the 3% range between $0.09 – $0.1, despite a relatively strong showing by other mega-cap meme coins. After multiple failed attempts at reclaiming $0.1, Dogecoin on-chain data trends show that the bulls’ buying momentum is weakening. 

Will the excess DOGE Sell orders mounted across crypto exchanges lead to a major bearish reversal?

Retail Traders Have Placed Orders for 550 million DOGE This Week 

This week, Dogecoin price appears to have stagnated just below the elusive $0.1 resistance territory. Meanwhile, other rival meme tokens like Shiba Inu (SHIB) and PEPE have coasted toward double-digit gains in the weekly timeframe. 

Between Dec 16, and Dec 23, Dogecoin price has barely moved, netting a 0.5% uptick, while SHIB and BONK registered 10% and 8% gains respectively.

After multiple failed attempts at reclaiming $0.1 territory, on-chain data trends shows that the Dogecoin bulls’ buying momentum is weakening. 

IntoTheBlock’s Aggregate Exchange Order Books chart, is on-chain metric that vividly illustrates this pessimistic DOGE price outlook.

At press time on Dec 23, the latest readings from the current trading logs of 10 prominent crypto exchanges including Binance and Coinbase shows that the DOGE retail traders have listed active orders to SELL 720 million DOGE. 

Meanwhile, as depicted below, bulls have only been able to muster active demand for 636 million DOGE around the current prices.  

The Exchange Order Books chart depicts the price distribution of the total buy/sell orders for a specific cryptocurrency across various exchanges. 

The chart above clearly illustrates that there is currently an excess market supply of 84 million DOGE across major exchanges and spot trading platforms.  

Logically, when the market demand (buy orders) falls short of the total supply (sell orders) it raises bearish concerns. 

With relatively fewer buy orders, many sellers may be forced to lower their asking price in the days ahead as they compete to get their orders filled quicker. 

DOGE Price Prediction: Road to $0.15? 

Based on the on-chain stats analyzed above, Dogecoin demand appears to be weakening. And with Layer-1 altcoins hogging swing-traders attention, DOGE price could enter a downswing in the days ahead. 

However, for the bears to validate this prediction, they must first overturn the initial support level at around $0.08. 

The Bollinger Band technical indicator also confirms this prediction. It shows that DOGE price currently has a strong support at ther lower Bollinger Band around $0.088. 

However, a decisive downswing below that range could see Dogecoin price tumble toward $0.07 $0.15 territory for the first time since November.

 

On the positive side, the bears could negate this bearish DOGE price forecast if they they successfully reclaim $0.12.

However, as observed this week, the resistance sell-wall around the Bollinger Upper–band (SMA) at the $0.1 area will likely prove daunting in the short-term.