Dogecoin [DOGE]: Assessing the odds of a 15% drop on the charts

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Dogecoin [DOGE] recorded a surge in mid-August and threatened to break past the $0.078-resistance level. For the space of a couple of days, the level held as support, but the bulls were overwhelmed quickly thereafter. Since then, the price has made a series of lower highs. Dogecoin did not show a high probability of a strong move north as the price toiled beneath a month-long resistance level.

To the south, the $0.055-level could halt the bears.

Source: DOGE/USDT on TradingView

The Visible Range Volume Profile showed the Point of Control to lie at $0.069. This revealed that from mid-May, the level that DOGE has traded the most volume at was $0.069. Just beneath this level was a bearish order block.

The daily timeframe underlined the market structure to be bearish as the previous lower high at $0.065 in September was unbeaten. The confluence of a key resistance level and the 12-hour bearish block (highlighted by the red box) set up a clear selling opportunity.

Sellers would look to drive the price as far south as the $0.05-$.055 region. To increase the risk-reward ratio, a move towards the $0.065 highs of the past two days can be used to enter a short position.

The technical indicators revealed a slight bearish bias. The RSI was near the 50-mark and showed no real trend in progress. The CMF dipped below -0.05 recently to show significant capital flows out of the market.

Source: Santiment

The Social Dominance metric has risen for Dogecoin over the past week. Yet, this might not see DOGE grab investors’ attention. In fact, a spike could also follow a sharp drop in price. After all, the meme coin was