Dogecoin (DOGE) Slow to Pick Up After Posting Losses in Weekend Trading

Dogecoin (DOGE) appears to be rotating around the $0.32 mark after a weekend of bearish trading that saw its value decline by almost 4%.

Aiswarya Gopan•Monday, August 23, 2021•2 min read

Dogecoin (DOGE) Slow to Pick Up After Posting Losses in Weekend Trading

Dogecoin (DOGE) appears to be rotating around the $0.32 mark after a weekend of bearish trading that saw its value decline by almost 4%. At the time of writing, DOGE/USD is trading at around $0.322.

The weekend activity bucked the bullish trend the leading memecoin had been on over the past several sessions, possibly on account of sharp selloffs amid investors indulging in profit taking. However, the market sentiment among cryptocurrencies remains positive after the leader Bitcoin managed to cross the $50,000 hurdle, driving higher levels of buying activity across the board.

An interesting factor that could support and power an uptrend in Dogecoin soon is a recent report by Chainalysis that suggests an uptick in adoption of the memecoin among new investors. On-chain analysis reveals that around 4 million investors currently hold some amount of DOGE; however, what’s interesting to note is that of this number, 82% of the supply is held by around 535 addresses that store over 10 million DOGE each. According to the firm, “This is likely a mixture of businesses, such as exchanges that store DOGE on behalf of millions of traders, and a few, now-wealthy, early investors.”

On the flip side, DOGE could come under some pressure after a recent analysis by Wolfe Research cautioned markets about the phenomenal growth of Robinhood and Dogecoin’s contribution to it through Q2. A few days ago, we reported how this leading memecoin accounted for over 60% of the crypto revenues the fintech app earned in the second quarter of the year. However, analyst at Wolfe Research, Steven Chubak, has warned that trading volume of the joke crypto have dropped by around 78% so far in this quarter, which could signify reducing interest in the coin among new entrants in the crypto space, which could spell bad news not only for DOGE but also for Robinhood.

Key Levels to Watch

Technical analysis of the 4-hour chart of DOGE/USD reveals a strong bullish bias among moving averages and the momentum indicator. Although, the MACD suggests some interest among sellers as well at the moment.

DOGE/USD

Dogecoin’s price is holding just above the pivot point at $0.315 and an increase in buying pressure can see buyers test the immediate resistance at $0.351. In case buyers break past this level, they can face resistance at $0.388 before rising above the key $0.40 level.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Aiswarya Gopan

Financial Writer & Editor - Asia & Europe Desk

Aiswarya Gopan is a former cybersecurity analyst, tech journalist and market researcher, who joins FX Leaders with over three years of experience in the blockchain industry. Aiswarya's areas of focus include market news out of the Asian and European markets as well as news coverage on cryptocurrencies.