Dogecoin Faces Crucial Moment as Futures Open Interest Declines: What’s Next for DOGE
Based on the recent Dogecoin price analysis, it’s evident that DOGE experienced a 1.5% drop over the past 24 hours, settling at $0.106 during European business hours on Friday. This decline coincides with a decrease in futures open interest, indicating waning trader interest in DOGE.
Bear Pennant Predicts an 18% Drop in DOGE Price
The price of DOGE is currently following a downward trend within a broader falling channel that has persisted for 106 days. On June 17, the asset breached a crucial support level, leading to lower prices. Reclaiming this level, now turned into a resistance, poses a significant challenge for Dogecoin.
Notably, DOGE’s price is currently below the 21-day, 50-day, and 200-day simple moving averages (SMA), signaling a non-bullish outlook. Additionally, a bear pennant pattern on the daily time frame suggests a potential 18% drop to $0.085.
The Chaikin Money Flow (CMF) for DOGE stands at 0.04 and is trending downward, indicating a decrease in buying pressure. The Relative Strength Index (RSI 14) further supports this bearish sentiment, hovering around 36.14 and declining, indicating an acceleration in bearish momentum.
In the event of a downward movement, key support levels to monitor for DOGE are at $0.103 and $0.091. Conversely, a bullish scenario could see the price of DOGE targeting $0.13, with intermittent resistance at $0.116 and $0.125.
Aggregate open interest for DOGE dropped by 0.26% in the last 24 hours, indicating a lack of new capital inflows. However, existing traders have remained bullish, with 74% holding long positions against 25% holding short positions, as per Coinalyze data. Data from Into The Block reveals that at the current price, 73% of DOGE holders are in profit, while 25% are in losses.
Impact of Bitcoin Volatility on Dogecoin Price
Additionally, it’s worth noting that Dogecoin’s recent price movements have been greatly influenced by factors such as Bitcoin’s volatility and general market trends. Notably, the recent Bitcoin sell-off led to a 26% downturn in DOGE’s price in the subsequent days.
Amidst these developments, Bitcoin has been struggling to break above the $60,000 mark, with indications of a potential dip towards the $54,000 support level to gather liquidity.
In conclusion, the decline in futures open interest signals a potential shift in market dynamics for Dogecoin, possibly leading to reduced volatility as well as a significant downward price movement, with a possible target at $0.085.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
