The Dogecoin price received intense selling pressure on Sunday which generated a lot of nervousness among the Dogecoin bulls and this may have triggered some fears of a recovery given the strong selling pressure that closed Sunday. down by almost 8%.
Unlike the DOGE, Dogecoin-inspired meme-coin Shiba Inu has made headlines in recent days thanks to its amazing rally. However, whenever a sudden rise occurs, an equally strong retracement can occur and make the “investment” slightly risky. Of course, given that DOGE and Shiba Inu are seen as the leaders of the meme pack, one might expect Dogecoin to act in a similar and volatile way.
The Dogecoin fearful of copying the Shiba Inu rally
Dogecoin holders may want to react and follow the Shiba Inu movement, but the DOGE price has shown some restraint. The crypto for the most part followed the indications of the market instead of those of some other cryptocurrency. It is mentioned that since the beginning of the month, the altcoin has only risen by 20.32%.
The biggest reason is probably Dogecoin’s liquidations in recent weeks. For example, positions worth $ 6 million were liquidated on 6 October. Along with retail investors, large portfolios or possibly even “whales” have made some significant transactions. Over 6,000 transactions, each worth more than $ 100,000, were conducted in 48 hours. Cumulatively these have been valued at over $ 21.61 billion.
Please note that the average volume of DOGE is less than 2 billion dollars in a single day.
Techno-Graphic Analysis and Dogecoin forecasts
DOGE’s rise was abruptly halted as investors recorded their profits at an attractive price level of $ 0.264, an important resistance zone. The downward pressure given by the bearish dynamic trendline is clearly evident in the following chart.
In the short term, the DOGE may fail to defend the bearish attacks and a retest at $ 0.193 is expected. In the event that sellers manage to overcome the support, the price could even test the demand area for the umpteenth time between $ 0.178 / 0.136 $.
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