Dogecoin Faces Potential Price Drop

Dogecoin Faces Potential Price Drop

Dogecoin (DOGE) has seen a 2.87% decrease in value over the last 24 hours, currently priced at $0.106. This drop is part of a larger trend within a descending channel formation that has persisted for 106 days. DOGE fell below a crucial support level on June 17, establishing lower lows and having difficulty sustaining upward momentum beyond this now-resistance level.

Price Prediction

Technical indicators suggest DOGE may be poised for further decline due to a bear flag formation on the daily chart. A downward breakout from this formation could result in an 18% drop, bringing the price to $0.085.

The Chaikin Money Flow and Relative Strength Index indicators also indicate a bearish outlook, reflecting a decrease in buying pressure and downward momentum.

Key Support and Resistance Levels

If DOGE experiences a downward breakout, key support levels to monitor are $0.103 and $0.091. Conversely, if it regains positive momentum, it could potentially rise to $0.13, encountering resistance at $0.116 and $0.125.

Market Factors

Dogecoin's price is heavily influenced by movements in Bitcoin (BTC) and broader market trends. In 2024, there have been few significant developments for DOGE. Speculation about its acceptance as a payment method for Tesla remains notable, but a recent surge in Bitcoin selling led to a 26% decline in DOGE's value, potentially setting the stage for further erosion.

Open Interest and Investor Sentiment

Data from Coinalyze shows that DOGE's total Open Interest has decreased by 0.26% over the last 24 hours, suggesting a modest reduction in new funds entering the market. Nonetheless, investors with active positions tend to remain optimistic, with 74% holding long positions and 25% holding short positions.

On-chain data from Into The Block indicates that 73% of DOGE investors are currently in profit, while 25% are at a loss.