Dogecoin Price Forecast: DOGE sell-off seems unstoppable despite renewed retail interest
- Dogecoin falls for a fourth consecutive daily session, trading below $0.0700 on Thursday.
- The DOGE derivatives market experiences renewed retail demand as Open Interest climbs to 16.36 billion DOGE.
- Dogecoin’s technical picture remains largely bearish as defined by the overhead dynamic SuperTrend indicator.
Dogecoin (DOGE) is trading under dominant selling pressure on Thursday, hovering below $0.0700, a recent support-turned-resistance level. The meme coin has shed 3% of its value in the first week of August, against a backdrop of heavier selling pressure in previous months since May highs around $0.1186.
Dogecoin attracts renewed retail capital
The Dogecoin derivatives market has experienced a massive uptick in perpetual futures Open Interest (OI) to 16.36 billion DOGE on Thursday, from 15.45 billion DOGE the previous day. OI reflects the notional value of outstanding futures contracts and options. A sustained uptick in OI can provide price stability and support a potential recovery.
Technical analysis: Dogecoin sellers gain ground
Dogecoin trades at $0.0691, keeping a bearish near-term bias as the price holds below the 50-day Exponential Moving Average (EMA) at $0.0754, the 100-day EMA at $0.0830 and the 200-day EMA at $0.0986. The SuperTrend line at $0.0758 reinforces this overhead supply, while the Relative Strength Index (RSI) near 39 suggests weak demand.
At the same time, the Moving Average Convergence Divergence (MACD) stays marginally positive, hinting at only tentative downside momentum rather than a strong recovery.
Initial resistance appears at the 50-day EMA around $0.0754, closely followed by the SuperTrend barrier at $0.0758. A daily close above this cluster would be needed to ease immediate bearish pressure and expose the 100-day EMA at $0.0830, ahead of the more distant 200-day EMA near $0.0986.
On the downside, the prior downward trendline break level at $0.0670 acts as the first meaningful support. A sustained move below this floor would likely extend the current decline, while holding above it keeps DOGE consolidating within a depressed but still contained range.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
