Dogecoin (DEGE) has experienced a significant decline in the last 10 days, and many investors have suffered serious losses in this process. The general situation of the market shakes the confidence in Dogecoin, while investors move more cautiously. Looking at the latest developments, the recovery process of Doge may be delayed and the pressure on the price may continue.
Open Interest) experienced a harsh decline in Dogecoin
A large investor output was observed in the Dogecoin futures market. Open Interest decreased by $ 1.2 billion in a week and fell from $ 5.05 billion to $ 3.85 billion. This shows that investors’ confidence in the future of Doge has decreased and closed their positions to avoid further harm.
This decrease in the futures market reduces speculative interest in Dogecoin. Investors avoid opening new positions on Dogge until more stability in the market. The decrease in open positions shows that interest in Dogecoin is reduced in the short term and that price movements may remain limited.
Capital entry to Dogecoin remained weak
Dogecoin’s overall market movement also tends to decline. The Chaikin Money Flow (CMF) indicator continues to remain below the zero line, which shows that new money entries are weak.
The low demand for Dogge reveals that investors hesitate to add new capital to the market and prevent the price rise. If there is no increase in the amount of capital entering the market, Dogecoin may be difficult to recover. Especially in the spot market, investors avoid risking funds, Dogecoin’s price is under pressure.
Dogecoin Price Estimation: Protecting $ 0.32 is critical
Dge lost about 15 %in the last 10 days and fell to $ 0.33. Currently, he’s trying to protect the $ 0.32 level as support. If this level of support is lost, the price may fall further and go below $ 0.30.
Due to the current market conditions and investor insecurity, Doge seems to be difficult to exceed $ 0.36 resistance in the short term. As long as this level remains below this level, price fluctuations may continue and most of the investors can avoid entering the market.
However, if the Dogecoin can exceed $ 0.36 and convert it to a support level, the market appearance may change. In this scenario, Doge may rise to $ 0.39 and compensate for some of its latest losses. In order to realize this, the confidence in the market needs to increase and investors should show interest in Dogecoin.
In summary, it will be critical whether Doge will maintain $ 0.32 in the coming days. If it cannot hold at this level, a decline below $ 0.30 may be inevitable. However, if the market sensitivity changes and the dog increases over $ 0.36, the downward trend may reversal and a recovery may be seen up to $ 0.39.
