NOIDA (CoinChapter.com)— Dogecoin price’s recovery rally seems to be struggling after the token dropped nearly 5% on Aug. 9.
The DOGE USD pair started to recover on Aug 10, with the token painting a tiny green candle in the early hours of trading. However, it seems unlikely that the memecoin would be able to overcome the bearish pressure against it.
Yet, analysts remain optimistic about Dogecoin prices’ future, with one analyst predicting that the DOGE USD pair would reach $2.25 in 2025. Other analysts also shared hopful outlooks for the token, but the reality remains slightly different from dreams.
The analyst predicting that Dogecoin could surge to $2.55 by 2025, stated the current price will stabilize around $0.09 after a sharp dip to $0.083. Moreover, Alan Santana identified an accumulation zone between $0.05 and $0.083, anticipating a rally if DOGE breaks key resistance levels.
Moreover, independent analyst Zer0 supported the bullish outlooks of his peers, noting historical patterns of explosive growth following periods of consolidation.
Profitability vs. Growth Challenges
Despite market fluctuations, Dogecoin remains resilient, with 68% of holders currently in profit. This reflects strong confidence among long-term investors, particularly as 67% of holders have maintained their positions for over a year.
However, while profitability remains high, the network faces significant growth challenges. The number of new addresses has been steadily declining, signaling a reduction in new participants. This trend, coupled with mixed transaction activity, suggests potential stagnation without the introduction of a new catalyst.
The downward trajectory in new address creation highlights a critical issue: the need for renewed interest to sustain the network’s expansion. Without fresh adoption or significant developments, Dogecoin may struggle to maintain its market position or achieve further growth.
The asset’s concentrated activity in Western time zones indicates untapped potential in regions like APAC, where increased focus could drive renewed participation and network activity.
Moreover, recent data from CoinGlass shows a decline in Dogecoin’s futures open interest and a dip in the OI-weighted funding rate into negative territory. This suggests a bearish outlook among futures traders, adding pressure on Dogecoin’s price stability in the short term.
DOGE Price Dumping Gains Under Bearish Pressure
DOGE price failed to convert its minor spike early on Aug. 10 into a rally, highlighting the bearish pressure against the memecoin. However, if the DOGE to USD exchange rate starts climbing, the token would face resistance from its 20-day EMA (red wave) near $0.11.
Moreover, flipping the immediate resistance might see DOGE price rise to the 50-day EMA (purple wave) resistance near $0.12.
On the other hand, a drop in DOGE’s price could force the token to test the support levels near $0.098 and $0.091 before recovering.
The relative strength index for Dogecoin remained neutral, with a score of 39.98 on the daily charts.
