Dogecoin struggles to recover amid price hurdles

On August 20, 2024, Dogecoin (CRYPTO:DOGE) experienced a notable 6% increase as it tried to approach the $0.11 mark. 

However, this upward movement was short-lived, and the coin has since lost these gains.

Recent data reveals several hurdles for Dogecoin’s price recovery. 

According to Santiment, Dogecoin’s one-day Realized Cap has dropped to a monthly low of $12.43 million. 

Realized Cap reflects the aggregate value of coins at the time they were last moved. 

A decline in this metric suggests that the value of DOGE may struggle to rise past $0.10, as lower-priced coins are being spent, contributing to a downward re-evaluation.

Additionally, the liquidation heatmap indicates potential trouble for DOGE. 

This tool shows areas where significant liquidation might occur, often due to insufficient margin balance on exchanges. 

The heatmap shows a high concentration of liquidity around the $0.10 level, suggesting that Dogecoin could face resistance at this price point. 

The concentration of liquidity may trap DOGE’s price within this range if buying pressure does not increase.

Technically, DOGE’s Relative Strength Index (RSI) remains below the neutral 50.00 level, signaling that bearish sentiment still dominates. 

For a bullish shift to occur, the RSI needs to rise above this threshold. 

Currently, DOGE is hovering around the $0.10 level, which aligns with the 23.6% Fibonacci retracement level. 

If market conditions remain unchanged, DOGE might struggle to exceed this price point.

Increased buying pressure could potentially drive DOGE’s price towards $0.13, aligned with the 61.8% Fibonacci retracement level. 

However, if the broader market faces another downturn similar to August 5, the price could dip back to $0.080.

At the time of reporting, Dogecoin was priced at $0.1049.