Key Takeaways
- DOGE is currently the underperforming cryptocurrency among the top 10 by market capitalization, experiencing a 7.5% decline in the last 24 hours.
- This bearish trend for Dogecoin coincides with a broader market downturn affecting Bitcoin and other major cryptocurrencies.
- Analysis of on-chain and derivatives data suggests that both large wallet investors and retail traders are reducing their exposure to Dogecoin and similar memecoins, increasing selling pressure.
DOGE Leading the Market Downturn
The cryptocurrency market experienced a significant downturn over the weekend, with Bitcoin’s price falling below the $108,000 mark. As commonly observed during market dips, memecoins were hit the hardest, with Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) all recording substantial losses in the past 24 hours.
Data from on-chain metrics and derivatives markets indicate a reduction in risk exposure to Dogecoin and other leading memecoins by large wallet investors and retail traders, which is contributing to increased supply pressure.
Data from CoinGlass reveals that the futures Open Interest (OI) for Dogecoin, representing the total notional value of all outstanding futures contracts, has decreased by 2% over the last 24 hours, settling at $1.70 billion. A decline in OI generally suggests that traders are reducing their leveraged positions or closing existing ones to mitigate risk.
Further on-chain analysis indicates a waning interest from significant wallet investors in memecoins. Specifically, the number of DOGE investors holding over 100 million tokens has remained consistent since the beginning of the month.
Potential for DOGE to Revisit Monthly Support at $0.15
The 4-hour chart for DOGE/USD displays a bearish and inefficient market, as the memecoin has failed to rally in recent weeks. Current technical indicators strongly suggest further selling pressure.
At the time of writing, DOGE is trading at $0.175, marking a 7.5% decrease over the last 24 hours. The bulls were unable to maintain the price above the support level of $0.17816, which was established by the low on October 11th. The current price action points towards a continued downward movement.
A daily close below this key level could lead to DOGE retesting the $0.15009 mark, a level seen during the October 10th market crash. Both the MACD lines remaining in negative territory and the RSI at 40 indicate a prevailing bearish sentiment.
Conversely, if the bulls manage to drive DOGE’s price above the $0.17819 level by the end of the trading day, the memecoin might see a surge towards Sunday’s high of $0.18884 within the next few hours.
Expert Summary
Dogecoin is currently experiencing a significant price drop, underperforming most major cryptocurrencies. This decline is attributed to reduced interest from large investors and a broader market sell-off. Technical indicators suggest a bearish outlook, with a potential retest of monthly support in the short term, though a rebound is possible if key resistance levels are broken.