- DOGE faces key support levels amid rising exchange netflow and sell-offs.
- Trading volume and Open Interest decline, signaling reduced market interest.
Dogecoin (DOGE) is witnessing turbulent market conditions, despite a 5.48% price surge to $0.1086 today. This comes after the coin hit a 14-day low of $0.10108 yesterday. Over the past week, DOGE has declined by 12%, with market bears exerting pressure. Notably, trading volume fell by 9%, signaling a potential lack of sustained interest. Despite the downturn, 80% of traders remain bullish, according to market sentiment.
In the last 24 hours, crypto whales purchased over 1 billion DOGE, valued at $108.7 million, per analyst Ali. However, the influx of large transactions and increased exchange netflow, up by 135.2 million DOGE, has driven the price lower. This influx has resulted in substantial sell-offs, with 1.56 thousand large transactions recorded, suggesting continued bearish sentiment.
Bitcoin (BTC), meanwhile, is experiencing similar volatility. Trading at $61,164 with a 0.31% dip, it reached a 16-day low. Adding on to it, DOGE has been struggling to maintain bullish momentum. Also, data suggests this downturn may be linked to decreasing trader confidence, as well as volume spikes and increased exchange netflow.
Moreover, Dogecoin’s exchange netflow turned positive, indicating a large inflow of DOGE into exchanges. This excess supply likely contributed to the price decline. IntoTheBlock reported an inflow of 135.2 million DOGE last week, suggesting active selling by investors.
Where is DOGE Headed?
On the technical side, DOGE’s daily chart suggests a bullish trend. The 9-day Exponential Moving Average (EMA) sits at $0.11036, and the Relative Strength Index (RSI) stands at 48, indicating it might reach an oversold condition. Immediate resistance levels for BTC are set at $0.13072 and $0.14270, while downside risks could see it drop to $0.09615, with support at $0.08246.
DOGE’s ability to maintain its bullish momentum amid fluctuating trading activity and whale sell-offs will be key in the coming days. Traders and investors are closely watching for any signs of strength or potential reversals as the cryptocurrency navigates these pivotal resistance levels.
