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DOGE dropped 11.32% in seven days as the memecoin risked hitting a 6-month low.
Total liquidations have hit $3.2 million, indicating strong bearish sentiment.
As a seasoned crypto investor with a knack for navigating the volatile digital asset markets, I find myself once again at the crossroads with Dogecoin (DOGE). Over the past month, the memecoin has been on a steady decline, and this recent 11.32% drop in seven days is just another blow to its already bruised reputation.
Over the past month, Dogecoin (DOGE), the leading meme-based cryptocurrency by market capitalization, has seen continuous price drops. Despite the fact that the overall cryptocurrency market has been marked by high volatility in recent times, meme-inspired coins have taken a significant blow.
As of this writing, DOGE was trading at $0.09617, marking a 3.26% decline in the past day.
Earlier, the meme coin had seen a continuous drop, decreasing by 17.87% in the past 30 days. As a result, it is currently 87% lower than its record high value.
Following a recent dip to $0.08, there was an effort to bounce back, reaching a peak of $0.11, but ultimately failing to hold onto those gains.
Over the past day, it appears there’s been a change in market dynamics that I find quite interesting. Specifically, trading volume has experienced a significant increase, soaring by approximately 79.25%. This surge has brought the total trading volume up to a substantial $492.4 million.
Still, the recent price action indicates, that DOGE was experiencing a strong downward trajectory.
Will DOGE’s bearish trends continue?
In my recent analysis, I observed a significant downtrend in Dogecoin (DOGE) as indicated by the bearish market conditions. To put it simply, the Moving Average Convergence Divergence (MACD) for DOGE was negative, which means that the signal line was positioned above the MACD line, suggesting a bearish outlook.
This is a sign of a bearish trend with increased downward momentum.
Similarly, the Chaikin Money Flow (CMF) stood at -0.05, implying an increase in selling activity, which added to the bearish indicators.
Upon closer examination, DOGE underwent massive sell-offs during the last 24 hours, surpassing other meme-based cryptocurrencies in this regard. Over the course of the past day, it has registered more than $3.2 million worth of liquidations.
A significant liquidation of long positions indicates a strong bearish trend, suggesting that investors are wagering on price decreases instead of rises. This means that those holding long positions appear less confident in maintaining their positions at a higher cost.
Moreover, the Doge OI-Weighted Funding Rate was set at -0.0026%, indicating a stronger preference for short positions over long ones. Essentially, this indicates a bearish market trend, as traders are showing more interest in betting against Dogecoin’s price increase.
Read Dogecoin’s [DOGE] Price Prediction 2024–2025
Consequently, given these price fluctuations, Dogecoin (DOGE) appears unable to maintain the $0.10 as a supportive level. In order to prevent further decline, it’s crucial for DOGE to hold the $0.09 as a vital support level instead.
If this support level fails to hold, the token will decline to a 6-month low of $0.07.
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2024-09-03 00:07