Dogecoin (DOGE) Ready for $0.12 Retest despite Macro Downtrends

• DOGE price lost approximately 85% since touching its ATH, highlighting macro downtrends.
• A slight 10% upsurge appears possible before Dogecoin continues its downside journey.
• Transaction data indicates a plausible move toward $0.14 considering the somewhat weak nearest resistance zone.

The original meme crypto, Dogecoin, has endured massive declines since hitting its ATH in 2021 May. Multiple factors contribute to the downbeat mode, but the primary one is because investors flee to the DOGE-killer SHIB. Dogecoin seems prepared for a slight upswing before continuing the downward action.

DOGE Crumbles Slowly

Dogecoin remained 85% lower within the past ten months and seemed to extend the downside attitude. The meme coin has gradually lost massive value since 4 December. Moreover, the meme token breaches critical supports, indicating further downtrends.

Recently, Dogecoin violated the support at $0.127, flipping the level into resistance. Market players might expect a 10% upswing from Dogecoin before retesting the level to authorize the flip. Though such a development means a near-term bullishness, it remains temporary, and DOGE will likely see more downtrends to fill the FVG (Fair Value Gap), stretching between $0.12 and $0.07.

Supporting Dogecoin’s higher move is the GIOM model by IntoTheBlock, indicating that DOGE’s closest support area is moderately strong. Therefore, market players may expect DOGE to move towards $0.14, the average purchase price of around $280,000 addresses than bought nearly 26.9 billion tokens.

Since these individuals hold the assets at losses, an action towards this territory might face selling momentum from participants attempting to break even. Therefore, DOGE’s upside remains limited to the $0.14 mark.

Also, the drop in transfers worth more than $100,000 within the previous three months to 700 from 3,000 depicts Dogecoin’s bearish picture. The 76% plunge shows high net investors or whales aren’t fascinated by Dogecoin at its current price, pulling out their investments. That also explains the bearish outlook in DOGE’s macro stance.

Though a near-term outlook might reveal a bullish case for DOGE, a 4hr candle close beyond $0.14 will cancel most of the sell-side momentum, ending the long-term bearish narrative. That will allow bulls to run towards the next obstacle around $0.16.

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