What to know:
- Dogecoin struggles below key moving averages as sell pressure dominates intraday trading
- Long liquidations dominate, signaling weak bullish conviction and increasing downside risk
- DOGE needs to reclaim $0.0932 resistance before any credible bullish reversal emerges
Dogecoin dropped below key levels, as selling pressure intensified across the market. Liquidation data shows rising downside risk, with long traders being forced out rapidly.
According to crypto analyst Ace, order flow data shows dominant sell-side activity and failed recovery attempts. DOGE continues to struggle below key resistance zones, reinforcing short-term bearish momentum.
DOGE price is below all of its short-term & medium-term MAs. These include the 20-EMA & 50-EMA, whose prices are at $0.0934 and $0.0985, respectively, as can be seen on TradingView.
These reinforce the downtrend in DOGE price. In addition, a current RSI of 43 provides evidence that the coin is in the midst of neutral to bearish conditions.
Furthermore, the MACD line is beneath the signal line, which shows that the upside momentum is diminishing at a very rapid rate. The DOGE price, per CoinMarketCap, was at $0.0901 and had dropped by over 3% in the last 24 hours. There is a high level of volume even as the price is dropping.
Selling Pressures Dominate Major Intra-Day Dogecoin Price Points
Regarding the order flow data for DOGE, Ace, a crypto analyst, stated that “the red delta bubble area has been significantly larger than the other colored bubbles for recent orders.” This further provides evidence of consistent selling pressures.
Dogecoin keeps failing to reclaim higher liquidity, showing buyers are losing control. Sellers are preventing any advancement above $0.0916 & $0.0932. Therefore, they are creating barriers to prevent any extended bull run in the DOGE price from happening.
Bidders are located at $0.0896 & $0.0884, and if those two support zones begin to break down, it would create additional opportunities for bears to sell at even lower levels of liquidity.
Also Read | Dogecoin Risks Breakdown as $1.79M Liquidations Hit
Traders Are Losing Confidence in Long Positions
Approximately $1.45 million worth of DOGE was liquidated within the last 24 hours based on CoinGlass data. Approximately 98% of all of the long positions were closed suddenly as a result of the downward movement in price.
These liquidation events indicate that there is a sharp rise in the short-term bearish momentum. According to CoinGlass liquidation heatmap data, DOGE liquidations show that there is a large amount of trading activity just below the $0.0890 price level.
These clusters show potential target levels if support begins to break. A breakdown of support would lead to further downward price action.
Market Participant Activity
Dogecoin futures volume decreased nearly 20% in the last 24 hours on CoinGlass. The decrease in volume illustrates declining confidence among participants.
Open Interest remained virtually unchanged and equaled approximately $1.05 billion. Thus, it seems that relatively few new trading positions were established by traders in the market.
Also, many traders do not want to establish long positions since little new money has entered the market. Long/short ratio for Dogecoin is 0.87, illustrating that shorts dominate.
Although Binance account ratios indicate that some traders are establishing aggressive long positions. Overall positioning in the market does not demonstrate clear domination from the bears.
Continued Downward Trend in Price Movement
Market analyst Bitcoinsensus reported that DOGE continues to form repetitive mini-cycles in its structure. Each cycle has multiple phases, including Accumulation, Markup, Pull-back, and Repeat on a variety of scales.
Structure appears to be forming in a pullback phase within a larger consolidation pattern. This would suggest that accumulation continues and may be leading to a sustained upward price move. However, no signs of bullish reversal are visible in the current short-term structure.
Key Levels to Determine Price Movement
As long as DOGE remains below $0.0916, bears will maintain control in the short-term. A liquidation-driven decline could occur if the price declines below $0.0896.
There is a possibility that early strength will occur if DOGE manages to retake $0.0916. However, DOGE will need a breakthrough through the resistance area around $0.0932 before validation occurs for a bull trend.
A breakout above $0.0932 will nullify the bearish trend and provide DOGE with a clearer path to continue upward.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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