On his hand, crypto chartist Rekt Capital recently highlighted a Head & Shoulders pattern on the weekly chart, suggesting potential further declines. Market data confirms this formation, pointing to critical tests at key support zones, including the Macro Downtrend and the black Range Low.
These observations suggest that Dogecoin’s current market position is precarious, with essential support levels being tested.
Recent developments in Dogecoin’s market dynamics indicate significant challenges ahead. The crypto experienced a severe downturn in April 2024 along with the broader market, with its market capitalization diminishing by $3.7 billion over just ten days.
Despite a brief rally around DOGE Day on April 20, indicative of a potential recovery, the resurgence was short-lived. The broader impact of the Bitcoin halving event during the same period exacerbated the volatility, as it significantly influenced other major Proof-of-Work cryptos, including Dogecoin.
On-Chain Data and Miner Activity
Further insights from on-chain data reveal significant activity among Dogecoin miners that could influence the coin’s price direction. Notably, recent shifts in miner reserves suggest a possible continuation of the downward trend.
