Dogecoin has challenged the $0.1 technical and psychological resistance level twice since the 25th of February. On both occasions, the memecoin was unable to break this supply zone.
Source: Coinalyze
Dogecoin was down 1.24% in the past 24 hours, according to CoinMarketCap, but the Open Interest has increased by 4.6%.
A closer look at the data showed that the Funding Rate has been negative since Friday, the 6th of March.
Additionally, the OI has been rising even as prices slipped lower. The Spot CVD was in a downtrend and neared the local lows.
Speculative and Spot market participants seemed convinced Dogecoin [DOGE] prices would go lower in the short-term.
Source: Santiment
The social media engagement has been relatively positive over the past month. The Weighted Sentiment saw sharp spikes in recent weeks, showing bullish online engagement.
In fact, the most recent spike in positive engagement and higher Social Volume came on the 4th of March, as the leading memecoin approached the pivotal $0.1 supply zone.
At the same time, the 30-day MVRV briefly rose to positive territory.
It appeared that the crowd was wrong to get excited. Short-term holders chose to take profits, and participants watched as prices fell back toward the $0.088 support zone.
What’s next for Dogecoin?
Source: DOGE/USDT on TradingView
The long-term swing structure was bearish. The Fibonacci retracement levels showed that $0.117, $0.109, and $0.103 were key retracements.
This meant that the recent attempts to reclaim $0.1 were signals to sell DOGE, not expect a breakout.
At the time of writing, the $0.088 support from February was under attack. The steady drop in OBV in recent weeks, the long-term bearish trend, and the RSI’s inability to climb above neutral 50 meant sellers were in control.
Further losses appear likely.
Traders’ call to action- Expect a drop below the local support
Source: CoinGlass
The Liquidation Map highlighted the large cluster of long liquidations from $0.084-$0.088.
These high-leverage liquidations are likely to be swept in the coming days, especially if Bitcoin [BTC] continues its bearish momentum and falls to the $63k-$65k local support zone.
Final Summary
- Dogecoin speculators appeared increasingly willing to short the memecoin over the past 48 hours.
- Increase in social volume and positive engagement online did little to keep the short-term bullish momentum up last week. A drop below the $0.088 support appears imminent.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
