DOGE price lingered at the $0.1 base for a long time, with losses increasing due to recent BTC sales. So, what does the current situation tell us? There is weakening in open positions for DOGE in futures, and CMF has become active. These indicators suggest we might see new price movements.
Dogecoin (DOGE)
OI, which fell to $2.51 billion, is the lowest figure for DOGE since the beginning of the year. Considering the strong liquidations triggered recently and the uncertain market environment, the weakening size of open positions in futures is not surprising. The shrinkage in the number of open positions may indicate weakening interest and a possible spot price decline due to decreased market activity.
The decline in open positions started on June 8, and we saw similar activity in many altcoins. The size of open positions, which fell by roughly 80% in about a month, was around $10 billion a month ago. The DOGE price, which fell by more than 30%, is lingering at $0.1.
DOGE Price Predictions
On the futures side, the funding rate is negative, and short sales are under pressure. On the other hand, despite the massive shrinkage in open positions in futures and the negative funding rate, CMF is on the rise. Chaikin Money Flow (CMF) is at 0.03 above the zero line and continues to trend upward. This shows us that money inflow in the spot market is dominant over outflow.
This divergence, which we can define as a bullish divergence, reflects demand despite the falling price. If CMF remains strong and the BTC price can stay above $57,000, we might witness new peaks in DOGE price.
In a possible recovery, peaks between $0.11 and $0.13 will be targeted. However, in the opposite scenario, the risk of decline is active down to $0.08. The inability of the BTC price to close above $58,000 and on-chain alarms (Germany sales) trigger fear among investors, leading to sales. This cycle continues to pose a short-term risk for DOGE.
Dogecoin also faces a significant drawback with the withdrawal of support from Elon Musk. For now, investors might stay on the sidelines and continue to observe.
