In the context of severe market fluctuations, Dogecoin has recently experienced a decline of about 12%, with the current price around $0.34, but the overall trend remains relatively stable.
In this round of sell-off, Dogecoin retreated to the important support level of the 50 EMA. Despite the obvious downward trend, from a broader perspective, Dogecoin still has potential recovery opportunities.
On-chain data presents some contradictory signals: first, DOGE's futures open interest has seen a sharp decline of 15.35%, dropping to $3.58 billion, indicating a retreat in speculative sentiment; however, unexpectedly, derivative trading volume surged by 108.98% in the past 24 hours, reaching $12.07 billion, suggesting that traders are reacting unusually positively to market price fluctuations, with a notable increase in market activity.
Interestingly, long positions have dominated the liquidations, with over $26.98 million in positions forcibly closed in a single day, indicating that some traders had overly optimistic expectations regarding the market trend.
From a technical perspective, Dogecoin's price is nearing a turning point, with the 100 EMA at $0.29 establishing a critical defense line, serving as the last line of defense.
Once lost, a drop to $0.23, reaching the 200 EMA and long-term support levels, may become a certainty; looking upwards, the technical and psychological double barrier at $0.40 poses strong resistance.
If the next target can approach $0.45 and successfully break through, bullish sentiment is likely to reignite. Although Dogecoin has experienced ups and downs recently, its strong community and unique market position provide hope for a rebound.
Looking back, during economic downturns, its ability to attract retail investors has always hedged against downside risks. Currently, if traders want to discern whether Dogecoin is consolidating or continuing to pull back, they must closely monitor trading volume and market dynamics.
Dogecoin's current support level is facing severe tests; if it cannot hold, the decline will inevitably accelerate; if it can stabilize and rebound, a new upward path may begin. Therefore, traders must be cautious in their decision-making, taking the broader market environment into account.
