Is Dogecoin Price Heading Lower? Analysts Predict Key Levels

Dogecoin (DOGE) has recently experienced a significant price drop, prompting traders to closely monitor its market behavior. Analysts have identified key price levels crucial for short-selling strategies. Over the past month, DOGE lost more than 40% of its value.

While some analysts anticipate increased volatility, others foresee potential for sustained upward movement.

Analyst Short-Term Targets for DOGE

Dogecoin traders are likely focusing on key levels identified by market analysts for short positions. Technical analysis suggests downward momentum, leading some analysts to issue sell signals. A TradingView analyst's pullback signal indicates a potential short entry point, suggesting a $0.217 stop-loss order. Potential profit-taking levels for short trades are estimated at $0.179, $0.163, and $0.144. These targets are determined using technical indicators such as Fibonacci retracement levels, RSI, moving averages, and the Ichimoku cloud.

Recent sell-offs have pushed DOGE below several support zones, closely watched by traders. If the current trend persists, these levels may serve as profit-taking points for short positions.

Dogecoin's 40% Drop in 30 Days

Dogecoin's price has plummeted approximately 40% in the last month. Currently trading around $0.20, it's significantly lower than previous highs. Key support zones are under pressure, and further depreciation is possible.

Despite the recent decline, DOGE remains up 90% year-over-year, indicating profitability for long-term holders. However, short-term traders are closely watching the price action, as the uptrend has faltered. Analysts suggest the current price level could be a crucial pivot point, determining whether DOGE stabilizes or continues its downward trajectory.

Dogecoin Futures Open Interest Plummets

The decline in DOGE's price correlates with a substantial decrease in open interest in the futures market. Glassnode data reveals a 67% drop in open interest over the past three months, falling from $4.07 billion in December to $1.33 billion. Open interest, representing outstanding derivative contracts, often reflects market sentiment. This significant decrease suggests reduced willingness among traders to hold leveraged DOGE positions, potentially indicating waning confidence in near-term price recovery. This decline, coupled with falling trading volumes, generally points to decreased investor interest.