#Dogecoin extends losses as long-term holders offload
Dogecoin trades near $0.17000 after a 5% drop on Tuesday, erasing the gains made in the two previous sessions.
On-chain data shows an increase in supply inflows held for 365 days to two years, signaling an offloading phase.
Derivatives data suggest a consistent decline in futures Open Interest, suggesting risk-off sentiment.
Dogecoin risks a steeper correction as sellers regain strength
Dogecoin failed to surpass the supply zone near the $0.18527 close from October 11, resulting in a 5% pullback on Tuesday. At the time of writing, DOGE struggles to hold above $0.17000 as bears target the $0.15704 support level marked by the low of June 27.
If the investors fail to regain confidence in the meme coin, the pullback phase could extend to the $0.12896 level marked by the April 7 low.
Adding to the risk, the momentum indicators signal a resurgence in selling pressure as the Relative Strength Index (RSI) reads 40 on the daily chart, reversing from near midline.
At the same time, the Moving Average Convergence Divergence (MACD) reverses towards the signal line, risking a crossover that would signal a renewed bearish momentum.
DOGE/USDT daily price chart.
However, if DOGE surfaces above $0.18527, it could extend the recovery to the 50-day Exponential Moving Average (EMA) at $0.19914.
