Dogecoin (DOGE) Price Prediction: Will DOGE Bounce Back After Whales Capitulate?

input: Will Dogecoin price rebound as whales capitulate? Which bullish patterns has DOGE formed? Why are whales selling their DOGE holdings?output: This performance is happening as on-chain data shows that whales are capitulating and dumping their tokens.

Dogecoin price has crashed by almost 70% from its last year’s high as it continues struggling in a bear market. On-chain data shows that whales have been capitulating and dumping their tokens. Still, one popular crypto analyst believes that the DOGE price will bounce back if it flips a key resistance level.

Dogecoin Whales Capitulate As Network Realized P/L Crashes

Third-party data shows that DOGE whales have continued selling their positions as the coin crashes in a bear market. According to Santiment, these whales have been in a selling spree since April 4, a trend that is gaining steam. They have sold billions of tokens in this period.

📊 After a strong rally to start 2024, crypto market realized profit & loss has slid heavily over the past four months. Notably, on-chain data shows that Dogecoin has seen an especially large decline in realized profit in recent times. https://t.co/s8phWbjE60 pic.twitter.com/P77jPq7z20

— Santiment (@santimentfeed) July 27, 2024

Another data shows that the network realized profit/loss has crashed to minus 107.3 million. It has remained in the negative zone since February this year.

The NPL is a popular data that shows the aggregate profit or loss realized by all holders of a token in a certain period. A negative figure means that these tokens are moving at a loss, implying capitulation.

Still, one crypto analyst believes that Dogecoin price may bounce back soon. In an X post, Olivier Maximus, an anonymous trader, noted that the Dogecoin price was still in a downtrend. However, he predicted that a bullish breakout will be possible if it prints a new higher low. If this happens, the coin will eventually jump to $0.35, up by 130% from the current level.

Dogecoin is still in a downtrend, but there's a possibility for a bullish breakout if it prints a new higher low. If this occurs, we can expect to see DOGE trading at $0.35 by the time it breaks out.

If it fails to hold the double bottom at $0.1425, we might see it retest the lows at $0.1.

If it manages to flip the 50-EMA on the daily chart and sustain above it, and also flips the 200-EMA, we can expect a strong move to the upside. A breakout above the neckline of the inverse head and shoulders pattern will also signal the beginning of a new bull market.

If it breaks down below the double bottom point at $0.1425, this view will be invalidated.

On the other hand, if it manages to break above the descending trendline, which is acting as the neckline of the inverse H&S pattern, and sustains above it, and also flips the 50-EMA, which has provided strong resistance in the past few months, then we can expect to see a rally in the near term.

Its first resistance level is at the 50% Fibonacci retracement level of the last major rally, which is at $0.1828. Next, it will face resistance at the 61.8% Fibonacci retracement level, which is at $0.2214. A breakout above this level could propel it to the 100% Fibonacci retracement level, which is at $0.35.

Its support levels are at the double bottom point at $0.1425, and the 38.2% Fibonacci retracement level, which is at $0.1586. A break below this level could see it test the 23.6% Fibonacci retracement level, which is at $0.1154.

The daily RSI is oversold, and the MACD is in a bearish trend. However, the histogram is starting to rise, which could indicate that the selloff is slowing down.

Overall, the technical analysis suggests that Dogecoin price may bounce back in the near term. However, it will face strong resistance in the near term.