Technical analysts say Dogecoin (DOGE) price faces a 50% decline if it breaks the long-term horizontal support level. On the other hand, Cardano (ADA) is in a strong recovery trend after the declines of the last week.
Dogecoin (DOGE) price may drop by 50%. Pay attention to these 3 things
DOGE technical analysis reveals that the price has remained slightly above the $0.059 support level since June 2022. This support level has been confirmed many times, which makes it quite important. Notably, the latest confirmations (green icons) showed long lower wicks indicating increased buying activity.
However, despite these positive signs, DOGE remains under pressure due to the descending resistance trend line that has been present since November 2022. When combined with the $0.059 support, it forms a descending triangle pattern that is generally bearish. During this period, DOGE established several lower highs. This indicates a loss of bullish momentum. DOGE price almost returned to the $0.059 level, erasing the gains from its recent rise.
If there is a breakout covering the entire high of this formation (white), DOGE will potentially drop the price to $0.030. This means a decrease of approximately 50 percent. DOGE must close below the horizontal support level at $0.059 to confirm this breakdown. On the other hand, a return to the descending resistance line will be a 16% increase.
In other news, we learned that FTX will liquidate many cryptocurrencies for refunds. However, although it reportedly has holdings in Dogecoin, the exchange has no plans to liquidate any shares. As Kriptokoin.com, we included FTX’s altcoin reserves and the latest decision of the US court in this article.
What’s next for DOGE price?
A double bottom formation has been observed in the DOGE price since August 17. This is also considered an upward sign. The first bottom was characterized by a long lower wick, while the second confirmed the bullish trend in the daily RSI. It is seen as a sign of significant upward movements. Currently, there are bullish signs on the daily time frame and it is expected that the price could climb up to the $0.070 resistance line. However, a close below the $0.061 level will invalidate the double bottom pattern.
In summary, this scenario leads to a long-term decline. As a result, the current situation is uncertain for DOGE. The price might bounce at the $0.059 support level. On the other hand, it may increase by 15% or fall below this level and lose 50% in value. Future moves will depend on how the $0.059 area reacts.
Cardano (ADA) is on the rise again
In the past week, Cardano has increased by 12%, from $0.24 on September 12 to $0.26 on September 19. But meanwhile, speculative investors were withdrawing their capital from the ADA Futures markets. According to crypto derivatives market data platform ADA Open Interest, it has fallen $5.6 million since September 12, when the price rally began.
Cardano has seen significant demand this week, driven by bullish headwinds in crypto markets. However, traders seem to be waiting for prices to rise significantly before selling. According to aggregate data from Order Books of crypto exchanges including Binance, Kucoin, and Coinbase, ADA buy orders have now exceeded sell orders.
As shown below, bulls have placed orders to buy 320.12 million ADA coins, which is well above the 280.3 million ADA coins currently available for sale. While bulls have a tight grip on the market, sellers seem to be resisting higher prices. The chart below shows that 185 million ADA, or 67% of current sell orders, were mounted at prices of $0.29 and above.
What’s next for the ADA price?
Based on the key indicators analyzed above, current spot market demand levels mean that Cardano price will likely remain above the $0.25 range in the coming days. However, the bulls will face serious difficulties in reclaiming the $0.30 zone.
Price Entry/Exit data summarizing the purchase price distribution of existing Cardano holders vividly confirms this prediction. He emphasizes that 40.92 million addresses purchased 1.9 billion ADA coins at an average price of $0.28. This resistance level could be daunting unless buyers increase their stakes significantly. However, if the bulls can break this sell wall, ADA price will make another attempt to reclaim $0.30 for the first time since August 1.
However, if market FUD unexpectedly intensifies, Cardano bears could potentially cause a massive decline towards $0.20. However, 27,030 addresses had purchased 198.6 million ADA at a minimum price of $0.24. If they choose to HODL, Cardano’s price may consolidate above this zone as predicted. However, if this support level allows, ADA price will start to approach $0.20, according to analysis. We included the Cardano founder’s latest comments about the project, which we reported as Kriptokoin.com, in this article.
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