Dogecoin [DOGE], one of the most prominent meme coins globally, is showing signs of a substantial price decrease due to the emergence of a bearish pattern in its price movement.
On December 26th, the cryptocurrency market as a whole, which includes major players like Bitcoin [BTC], Ethereum [ETH], and XRP, witnessed a significant downturn, leading to a shift in market sentiment towards a bearish trend.
The current factors contributing to DOGE’s negative outlook include overall market sentiment, increased bearish activity among traders, and a pattern of declining prices.
Analysis of Dogecoin’s Market Performance and Critical Levels
As per CryptoCrypto’s analysis, DOGE is on the cusp of breaking out from a period of consolidation, which occurred after it failed to sustain the support level at $0.35.
Following the recent price drop, this meme coin has touched the lower boundary of the consolidation phase around the $0.30 mark.
Based on the analysis, if DOGE fails to maintain this lower limit and closes a daily candle below $0.30, there is a high likelihood of a 25% decline, potentially reaching $0.22.
The bearish scenario for DOGE will come into play only if it concludes a daily candle below $0.30; otherwise, it might not materialize.
DOGE’s Negative On-Chain Data
This downward price trend has impacted traders’ sentiment. According to data from the on-chain analytics company Coinglass, DOGE’s Long/Short Ratio currently stands at 0.71, the lowest seen since the start of December 2024.
A ratio below 1 indicates a strong bearish sentiment prevailing among traders. The data further shows that 58.3% of top DOGE traders are holding short positions while 41.7% are in long positions.
In addition to traders’ pessimistic views, data suggests that long-term investors are accumulating DOGE from exchanges, as highlighted by Coinglass.
Analysis of DOGE’s spot inflow/outflow reveals a significant outflow of $32.75 million from exchanges. This substantial outflow presents a favorable buying opportunity and hints at potential upward movement in the future.
Current Price Trends
Currently, DOGE is trading close to $0.315, displaying a price decline of more than 6.89% over the last 24 hours.
During the same period, its trading volume has decreased by 13%, indicating lower engagement from traders and investors amidst concerns of an impending price drop.