Dogecoin (DOGE) has a sell signal: Indicators are scared!

Dogecoin ($DOGE ) experienced a sharp 20 percent decline last week, which caused the open interest (#OI ) level to approach its lowest levels since November 10.

DOGE open interest reached an annual peak of $ 12 billion in April, but it experienced a major decline until October. Although a recovery was observed earlier this month, OI levels are now on a downward trend again. The decline in the DOGE price and the decreasing open interest show that investors are more cautious and do not expect much of an increase in the short term.

Currently, Dogecoin open interest has decreased to $ 1.42 billion. OI refers to the total of long or short positions open in the futures or options markets.

A rising OI indicates that new positions are being added and investors' confidence in the price movement is increasing. On the other hand, the decrease in OI indicates that positions are closed and investors are cautious about the token.

The sharp decrease in DOGE's open positions indicates that investors do not expect an increase in short-term price movements. As long as there is no increase in the data in question, selling pressure on #DOGE may continue.

According to the daily DOGE chart, important support levels are being lost one by one. In particular, the drop below $ 0.35 has started to cause panic in investors.

The Moving Average (MACD) indicator supports this decline. MACD measures market momentum. A positive value indicates upward momentum, while a negative value indicates downward momentum. Traders and analysts generally interpret this indicator as buy-sell.

Currently, the MACD indicator is in a negative zone for Dogecoin. If this situation continues, the price may decline to $ 0.27. If it remains above $ 0.35, an increase to $ 0.48 may occur.