Dogecoin has faced a sharp decline over the past 10 days, erasing a significant portion of investors’ profits. The meme coin lost nearly $8 billion in market cap, impacting market sentiment and rising skepticism.
This uncertainty could delay Dogecoin’s recovery as cautious investors hesitate to re-enter the market.
Dogecoin Is Losing Support
Open Interest in Dogecoin has dropped significantly, falling by $1.2 billion in the past week. It declined from $5.05 billion to $3.85 billion, highlighting traders’ lack of confidence. The price drop triggered an exodus from the futures market as traders closed their positions to avoid further losses.
This retreat from futures trading suggests investors are waiting for a more stable market before placing new bets. With lower Open Interest, speculative activity around Dogecoin has slowed down.
Dogecoin’s overall macro momentum reflects the bearish sentiment that has extended beyond the derivatives market. The Chaikin Money Flow (CMF) indicator remains below the zero line, signaling weak inflows.
This suggests that investors are unwilling to commit new capital, further delaying a potential price recovery.
The lack of inflows in the spot market reinforces Dogecoin’s vulnerability. Traders continue to refrain from risking funds, keeping the meme coin in a tight range. Until inflows increase, DOGE may struggle to gain upside momentum.
DOGE Price Prediction: Regaining Momentum
Dogecoin’s price has dropped nearly 15% in the past 10 days, now trading at $0.33. The meme coin is attempting to secure the support of $0.32. Holding this level is critical to preventing further declines and stabilizing price action.
Investor skepticism and weak market confidence could prolong DOGE’s consolidation. If sentiment does not improve, the meme coin may remain below the $0.36 barrier. In this scenario, Dogecoin could also become vulnerable to a drop below $0.30.
However, if Dogecoin manages to flip $0.36 into a support level, it could invalidate the bearish outlook. A move past this resistance could set DOGE on a recovery path, pushing its price toward $0.39, which would help it recover a portion of its recent losses.
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