Dogecoin [DOGE] has fallen by over 40% since 22nd September, with the memecoin losing its position among the top-10 cryptos by market cap. In fact, it has fallen by over 12% to a cap of around $9.88 billion over the last seven days, with the price at $0.063 at press time.
In fact, DOGE seemed to be trading in a descending trend channel, with the $0.059-$0.060 level emerging as a key support.
Its daily trading volumes have also fallen significantly. The average net volume was seller-dominated, with 265.5 million DOGE tokens exchanged for USDT on Binance’s spot market.
Similarly, the CMF reading fell from 0.20 to 0.01. Even though the metric was still above the neutral level, the sharp decline hinted at capital flight.
At the time of writing, Dogecoin seemed to be heading towards the slanting trendline support, which runs from $0.0885 to $0.0566. Interestingly, bulls have been defending this level even at the height of intense selling pressure.
So, if the support holds, a rebound towards the mid-range around $0.074 may follow. Otherwise, if the memecoin breaks the zone, $0.04 will be the next area where buyers could return.
Why is DOGE’s $0.059-level under stress?
First of all, Dogecoin ETFs have been inactive for the past month for the two products that are live in the U.S. The last activity was on 13th October, when it saw $138.57K in net outflows.
Over a period of one year, the ETF has had a cumulative net inflow of just $15 million despite being the king of all memes. These figures imply that its ETF interest has been muted.
That’s not all either as Hyperliquid longs have been heavily underwater too, with their average entry price on Dogecoin at $0.0842. This entry price seemed to be 28.41% above the press time price of the memecoin, hinting that a similar phenomenon was reflected in the derivative markets.
The $0.0842 level is now acting as dynamic resistance. If bulls can reclaim it, then it would serve as support.
The significant declines in prices suggested that long positions may be exposed to downside risk. In fact, there appeared to be large, long liquidation clusters at the $0.061 and $0.03-levels, adding to the selling pressure of the existing one.
Therefore, if DOGE can defend the support at $0.060 and absorb leveraged selling, a recovery would be feasible. Otherwise, the memecoin may break down and expose $0.04 or even lower demand levels.
Final Summary
- Dogecoin has fallen by over 40% since 22nd September, with $0.060 emerging as a key support level.Â
- DOGE ETFs’ inactivity, long positions trading in losses, and lower-level liquidation clusters are contributing to Dogecoin’s downside risk.Â
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