The recent trajectory of Dogecoin (DOGE) has been marked by persistent bearish pressure, triggered by the emergence of a bearish flag pattern on the daily chart. This popular memecoin has faced difficulties in sustaining its momentum and has been testing the critical support level of $0.092 while encountering resistance from the 50-day EMA.
As of the latest update, DOGE is currently being exchanged at approximately $0.1008, encountering immediate obstacles near the 20-day EMA at $0.1015 and the 50-day EMA at $0.1054. These EMAs have continued to act as resistance levels, impeding the bullish forces from influencing the short-term trend significantly.
Will Dogecoin Persist Under Selling Pressure and Exploit Key Support Thresholds Again?
If the bearish trend on DOGE persists, traders should closely monitor the possibility of a retest of the crucial $0.092 support level. A breach below this pivotal point could indicate a more substantial descent towards the $0.083 mark in the near future.
Such a scenario would confirm an extended period of bearish influence on Dogecoin, particularly if the general market sentiment continues to be bearish.
Conversely, a robust defense of the $0.092 support level might empower the bulls to reestablish control and propel DOGE back above the $0.105 resistance level, potentially aiming for $0.118 if the bullish momentum is sustained. Nonetheless, the short-term outlook remains bearish unless Dogecoin manages to recover these critical moving averages.
The Relative Strength Index (RSI) has positioned just below the neutral 50 threshold, signaling the persistence of bearish sentiment without entering the oversold territory yet. This indicates the potential for further downside movement before a probable reversal.
It’s essential to highlight that the MACD lines are on the verge of a possible bearish crossover. If the MACD line descends below the signal line, it would reinforce a notable bearish dominance.
Derivatives Indicators Unveil This
The open interest in DOGE has witnessed a slight uptick of 1.09% in the past day, amounting to $458.70 million in open contracts. This suggests that traders are maintaining their positions despite the prevailing bearish price actions. Nevertheless, the long/short ratio stands at 0.967, hinting at a marginal inclination towards short positions.
Interestingly, the long/short ratios concerning DOGE/USDT on Binance notably favored long positions, surpassing 2.5 for top traders.
Despite the rise in open interest levels, the sharp decline in options volume by 69.47% to $19.76K implies a reduced interest in options trading. This trend signifies that traders might be uncertain about short-term market volatility or are awaiting a clearer trend before committing to significant moves.
Additionally, potential buyers are advised to monitor the movements of Bitcoin before finalizing any decisions.