At press time, Dogecoin seemed about to break a key support line.
Market sentiment was pessimistic according to on-chain measures.
Dogecoin [DOGE] was trading around the bottom line of its horizontal channel, which it has trended in since 13 April.
An asset's price consolidation inside a range creates a horizontal channel. The top channel line resists, while the bottom line supports. Bears erected resistance at $0.17, while bulls defended $0.10, providing long-term support for DOGE.
DOGE might drop to new chart lows if bulls fail to defend this support level. This indicates a market overrun with sales.
Several on-chain metrics suggested this. Since 31 March, memecoin sentiment has been mostly negative.
This indicator represents market sentiment toward an asset. Its price falls when it delivers a negative value because the asset market is swamped with negative emotion.
DOGE's weighted emotion was -0.17 at press time. If memecoin sentiment remains low, its price falls. This might lower its support level.
General DOGE market demand also fell. Santiment reports a 13% decline in the average daily count of memecoin addresses that have completed at least one transaction in the previous 30 days.
Over the last month, DOGE whales have steadily lowered their memecoin exposure to protect their assets. The daily count of DOGE's major transactions has dropped dramatically during the previous 30 days, according to IntoTheBlock.
Over the previous month, DOGE transactions of $100,000–$1 million have dropped 46%. Over the same time, $1 million to $10 million deals fell 39.1%.
DOGE Futures dealers persist.
Futures traders have been positive about Dogecoin despite its dismal price performance.
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Coinglass found that the coin's financing rate has been positive for two months, except for 18-19 June.
In perpetual Futures contracts, funding rates keep the contract price close to the spot price.
