Key Takeaways
- With a 6.10% price dip, Dogecoin (DOGE) has lost its key support level at $0.184, opening the path for a massive price decline.
- Price action suggests that another 21% drop could be possible if DOGE closes the daily candle below the $0.18 level.
- Short traders are strongly dominating, having built $16.87 million worth of short positions around the $0.186 level.
Today’s 6.10% price dip has put Dogecoin (DOGE) in trouble, as the meme coin lost its key support level of $0.184 after holding it for three long months. This notable decline was likely triggered by a shift in market sentiment, along with aggressive selling pressure from market participants over the past week.
DOGE Price Momentum and Rising Trading Volume
Today’s 6.10% price dip has put Dogecoin (DOGE) in trouble, as the meme coin lost its key support level at $0.184 after holding it for three months. This notable decline was likely triggered by a shift in market sentiment and increased selling pressure from market participants over the past week.
The significant surge in trading volume during the price drop suggests that traders and investors are highly interested in driving the price in the current downward direction.
Aggressive Selling Pressure Spotted
Upon examining the details, it appears that market participants are aggressively betting on the selling side, as recorded by the on-chain analytics platform CryptoQuant.
The Spot Taker CVD (Cumulative Volume Delta, 90-day) data shows that taker sell orders have dominated the market over the past week, indicating strong selling pressure in the spot market. This suggests that traders are actively offloading their holdings, aligning with the ongoing bearish sentiment.
Dogecoin (DOGE) Technical Outlook: Key Levels to Watch
TimesCrypto’s technical analysis on the daily chart reveals that DOGE has lost its key support at $0.184 for the first time in the past three months, opening the door for further downward momentum.
Based on the current price action, if DOGE’s downward momentum continues and the daily candle closes below the $0.18 level, it could experience a sharp decline of over 21%, potentially reaching the $0.146 level. This bearish outlook will only be confirmed if the price closes the daily candle below the key support level; otherwise, it will be invalidated.
On the other hand, if the price reverses and fails to close the daily candle below the $0.18 level, DOGE could repeat its historical pattern and experience a price reversal.
At press time, DOGE’s Chaikin Money Flow (CMF) value stands at -0.05, indicating that capital outflows are dominating inflows and suggesting weak buying pressure in the market. Meanwhile, the 200-day Exponential Moving Average (EMA) on the daily chart remains above DOGE’s price, hinting that the asset is in a downtrend.
DOGE Major Liquidation Levels and Bears’ Dominance
Looking at the current market sentiment, traders have turned bearish and are strongly betting on short positions, as revealed by the derivatives platform Coinglass.
According to the DOGE Exchange Liquidation Map, the meme coin’s major liquidation levels stand at $0.1788 on the lower side (support) and $0.186 on the upper side (resistance), where strong interest has been recorded.
At these levels, traders have built $6.45 million worth of long positions and $16.87 million worth of short positions, indicating strong bearish dominance over the meme coin.
When combining price action with on-chain metrics and derivative data, it appears that the current market sentiment for DOGE is bearish and may continue its downward momentum until it reaches the next support level.
Also Read: SEC Asks XRP, SOL, LTC, DOGE Issues to Withdraw 19b-4 Filings, What’s the Reason?
