Dogecoin (DOGE) is priced at $0.106 after a 2.87% drop in the last 24 hours. This price drop is part of a larger trend within a descending channel formation spanning 106 days. DOGE fell below a critical support level on June 17, recording lower lows and struggling to move upward past this now-resistance level.
Price Could Drop to $0.085
Currently, DOGE is trading below the 21-day, 50-day, and 200-day Simple Moving Averages (SMAs), indicating a bearish outlook for the memecoin. Additionally, price predictions suggest DOGE might be on the verge of further decline due to a bear flag formation visible on the daily chart. Such a downward breakout could lead to an 18% drop, bringing the price to $0.085.
The Chaikin Money Flow (CMF) indicator for DOGE is at 0.04 and trending downward, reflecting a decrease in buying pressure for the memecoin. The Relative Strength Index (RSI 14) indicator also points to downward momentum, standing at 36.14 and trending lower. Taken together, these technical indicators suggest a strengthening bearish trend for Dogecoin.
If DOGE experiences a downward breakout, key support levels to watch are $0.103 and $0.091. Conversely, if it regains upward momentum, the memecoin could rise to $0.13, encountering resistance around $0.116 and $0.125.
Dogecoin’s price is largely influenced by movements in Bitcoin (BTC) and overall market trends, and 2024 has seen few significant developments for DOGE. Speculations about its acceptance as a payment option for Tesla remain one of the few notable developments this year, but a recent wave of Bitcoin selling led to a 26% drop in DOGE’s price, setting the stage for further declines.
Additionally, Bitcoin’s struggle to surpass the $60,000 threshold and signals that it might drop to gather liquidity around the $54,000 support level are increasing pressure on DOGE.
Open Interest Declines
Coinalyze data indicates that DOGE’s total Open Interest (OI) fell by 0.26% in the last 24 hours, suggesting no new funds are entering the DOGE market. However, investors with active positions remain optimistic, with 25% in short positions and 74% in long positions.
Moreover, on-chain data analysis by Into The Block reveals that 73% of DOGE investors are in profit at current prices, while 25% are at a loss.
