The price $DOGE has decreased
below $0.20 amidst a broader correction in the meme coin market, testing the critical support area at $0.17. Are the bears about to take control?
As the cryptocurrency market declines, the meme coin sector has seen a 5% drop in market capitalization over the past 24 hours, reaching $60.47 billion.
With the broader market correction, the price of Dogecoin has dropped by nearly 10% during the same period, breaking the psychological level of $0.20. Will this decline in the largest meme coin lead to a collapse of the demand zone at $0.17?
Dogecoin Price Analysis
On the daily chart, the price $DOGE reveals a failure to maintain the upward trend we saw earlier this week. After facing strong rejection at the 100-day exponential moving average at $0.2043, the price of Dogecoin has taken a downward turn, forming a third consecutive red candle.
Dogecoin Price Chart
The price $DOGE is now trading below the 23.60% Fibonacci retracement level at $0.17718. Its current market price is $0.1740, marking a decrease of 3.95% over the day.
As the intensity of the decline increases, pressure mounts on the local support trendline and the demand area at $0.17. While optimistic traders are looking for a potential double bottom reversal at $0.17, the broader market sentiment increases the risk of a collapse.
The MACD indicator and signal lines have failed to form a bullish crossover, continuing in a downward direction, with an increasing number of bearish histogram bars. Additionally, the ongoing decline in the 50, 100, and 200-day exponential moving averages reinforces the bearish outlook.
According to Fibonacci levels, a deeper retracement to $0.1298 is likely. However, price action analysis indicates slight support at $0.1529. On the upside, a potential reversal may target the 50-day exponential moving average at $0.1976.
Bearish imbalance in Dogecoin derivatives
With the intensifying selling pressure in the market, optimism about Dogecoin derivatives is fading. According to CoinGlass data, open interest volume has decreased by 14.17% to reach $1.80 billion.
As the positive sentiment among derivatives traders declines, this is reflected in the funding rate weighted by open interest, which has fallen to 0.0009%.
DOGE Derivatives
It is worth noting that the past twenty-four hours have seen significant liquidations of long positions, with long position liquidations reaching $24 million, compared to only $1.6 million in short position liquidations.
This has led to an imbalance in Dogecoin's open positions, with the long-to-short ratio decreasing to 0.9084.
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