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Add V: jmay1160 Add QQ:3788353562The level of $0.21 is a key resistance level for long-term DOGE bulls.
- Dogecoin price trend has been bearish, breaking below the low point of May
- The $0.21 area must first be converted to a support level for the long-term trend to turn bullish
Dogecoin [DOGE] has been continuously declining over the past five weeks. This leading cryptocurrency erased the 58% gain from the second week of May and broke below the May low point on June 20th.
AMBCrypto emphasized Dogecoin's blueprint in a recent report. The rally in April and May might just be a prelude to a parabolic rebound.
In fact, the net exchange flow indicator has been negative over the past two weeks - a sign of DOGE accumulation.
Dogecoin Holders Need Not Panic
Dogecoin's coin days destroyed (CDD) indicator saw a significant surge on June 14th and again on June 17th. This reflects a notable increase in old coin trading volume and suggests selling pressure.
However, the recent CDD increase has not yet formed a sustained trend like those in November-December 2024 or June-July 2023. Therefore, it may be premature to definitively conclude a continuous on-chain distribution that would lead to capitulation (as in 2023) or massive profit-taking (as in late 2024).
The Cost Basis Distribution (CBD) heatmap visualizes the supply density of Dogecoin at different price levels over time. Warm colors indicate higher supply and reflect strong supply and demand zones.
There are three different supply bands in the $0.182 to $0.211 range. They attempted to stop the Dogecoin bears but failed. This means that if Dogecoin rebounds, panicked holders might choose to exit at these levels, which could make a stronger rebound more difficult.
In August-September 2024, the price broke below a key demand interval but recovered several months later. Considering the forex outflow over the past two weeks, a similar scenario may be expected in the coming months.
