Dogecoin (DOGE) has experienced a prolonged downturn, with a recent 1.5% drop in the last 24 hours to trade at $0.106 during European business hours on Friday. This price decrease coincides with a decline in futures open interest, indicating reduced investor interest and suggesting that further downside may occur before any potential rally.
Key Price Analysis
Dogecoin has been trending within a broader falling channel for the past 106 days. On June 17, DOGE broke below a crucial support level, establishing lower prices. Reclaiming this support-turned-resistance will likely be a significant challenge for Dogecoin.
Currently, DOGE is trading below the 21-day, 50-day, and 200-day simple moving averages (SMA), signaling a non-bullish outlook. A bear pennant pattern on the daily chart suggests that DOGE may be poised for further declines, potentially dropping 18% to $0.085.
The Chaikin Money Flow (CMF) indicator stands at 0.04 and is turning downward, indicating decreasing buying pressure. The Relative Strength Index (RSI) is around 36.14 and also trending downward, further supporting the bearish sentiment.
Key Support and Resistance Levels
If DOGE breaks lower, key support levels to watch are $0.103 and $0.091. Conversely, if bullish momentum prevails, DOGE may target $0.13, with potential resistance at $0.116 and $0.125.
Data from Coinalyze reveals that aggregated open interest (OI) for DOGE has dropped by 0.26% in the last 24 hours, suggesting a lack of new funds entering DOGE trading. However, existing traders remain largely bullish, with 74% holding long positions compared to 25% holding short positions.
On-chain data from IntoTheBlock shows that at the current price, 73% of DOGE holders are in profit, while 25% are at a loss.
Impact of Bitcoin Volatility
Dogecoin's price action has largely been influenced by Bitcoin's movements and overall market trends. In 2024, DOGE has seen limited development aside from speculation about its adoption as a payment option for Tesla. The recent Bitcoin sell-off resulted in a 26% crash for DOGE in the days following the market downturn, triggering further declines for the meme coin.
Bitcoin itself appears stuck below the $60,000 barrier, with signs of another dip potentially bringing it down to $54,000 to collect liquidity.
Conclusion
Dogecoin's price is at a critical juncture as futures open interest declines, signaling a potential shift in market dynamics. This decrease in future activity could reduce volatility and set the stage for DOGE’s next significant price movement, likely heading lower to $0.085. Investors and traders should watch the key support and resistance levels closely to gauge DOGE's future direction.
Notice:
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