Dogecoin at a crucial support level: Will DOGE fall to $0.07?
Dogecoin experiences a sharp decline on the daily charts, as liquidation hits $3.2 million in the last 24 hours.
- DOGE dropped 11.32% in seven days as the memecoin risked hitting a 6-month low.
- Total liquidations have hit $3.2 million, indicating strong bearish sentiment.
Dogecoin [DOGE], the largest memecoin by market cap, has experienced a sustained decline over the past month. While crypto markets have witnessed extreme volatility in the recent past, memecoins have been hit hard.
As of this writing, DOGE was trading at $0.09617, marking a 3.26% decline in the past day.
Prior to this, the memecoin has experienced a sustained decline, dropping by 17.87% over the last 30 days. With this sustained decline, DOGE remained 87% below its all-time high.
After hitting a local low of $0.08 last month, it has attempted to recover, hitting a high of $0.11 before losing all the gains.
However, on the bright side, the last 24 hours have witnessed a shift in market activities. As such, trading volume has surged by 79.25% to $492.4 million.
Still, the recent price action indicates, that DOGE was experiencing a strong downward trajectory.
Will DOGE’s bearish trends continue?
AMBCrypto’s analysis showed that DOGE was experiencing a strong bearish market. For starters, the token’s MACD was negative, indicating the signal line was above the MACD line.
This is a sign of a bearish trend with increased downward momentum.
Equally, Chaikin money flow (CMF) was negative at -0.05, suggesting increased selling pressure. This was another bearish signal.
Looking further, DOGE had experienced extreme liquidation over the past 24 hours, outpacing other memecoins. In the past day, the memecoin has seen over $3.2 million in liquidation.
Higher liquidation for long positions is a strong bearish signal, as investors seem to be betting on price increases. Thus, long position holders lack the conviction to pay premiums and hold their positions.
Additionally, the Doge OI-Weighted Funding Rate was negative at -0.0026%, which further supported the reduced demand for long positions. This suggested that the market was bearish, with increased demand for short positions.
Read Dogecoin’s [DOGE] Price Prediction 2024–2025
Therefore, based on these price movements, DOGE has failed to hold a $0.10 support level. With this downside, the memecoin has to hold $0.09 as a critical support level.
If this support level fails to hold, the token will decline to a 6-month low of $0.07.
