Dogecoin (DOGE) Price Analysis
Recently, Dogecoin's ambitions of reaching previous highs have diminished. Two weeks ago, DOGE was priced at $0.13, but in the past week, it has dropped by 8.86%. This decline raises concerns among investors who hoped for a recovery.
On October 7, Dogecoin’s open interest stood at $1.35 billion. Open interest reflects the total number of open positions in the market. As the open interest has decreased to $801.99 million, it indicates a significant withdrawal of funds, approximately $458 million, in just 24 hours.
This drop in open interest suggests that traders are more inclined to sell, placing downward pressure on the cryptocurrency. The current price of DOGE is at $0.10, resting at a critical support level.
Recent data shows that large holders of Dogecoin have also reduced their holdings, with a notable decline in netflow. This indicates a shift in market sentiment, with many large investors selling off their positions.
The daily DOGE/USD chart reveals a head-and-shoulders pattern, signaling a potential bearish reversal. If the price breaks below $0.093, it may plummet to $0.080. Conversely, if buying pressure increases, there is a chance for the price to rise to $0.15.
