- 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?
Source: TradingView
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.
Source: Coinglass
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.
Source: Coinglass
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.
