There seems to be increasing concern about the future of Dogecoin. Some analyses indicate that there are multiple factors contributing to this sense of danger.#Dogecoin
One of these factors is the decline in funding rates in the derivatives market, indicating that more traders are inclined to short sell, which may put downward pressure on prices. Additionally, open interest in Dogecoin has remained steady since February, demonstrating a lack of enthusiasm among traders using leverage.
Technically, Dogecoin is forming a descending triangle pattern for the second time, which is a pattern that often precedes a downward trend. Analysts point out that maintaining the support level at $0.1428 is critical to avoid another significant drop. If the price breaks this level, it may find new support near $0.0906.
Nonetheless, it is worth noting that there is some buying pressure from immediate investors, as Dogecoin has recorded net outflows from exchanges since the beginning of the cryptocurrency market downturn in late January. This buying activity could mitigate losses and help stabilize the price.
Overall, there seems to be a state of uncertainty surrounding Dogecoin at the moment, as some indicators suggest potential weakness while there is still support from immediate trading investors$DOGE
