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Considering the volatility of the market as a whole, Dogecoin's performance is still comparatively stable despite a recent 12% decline to trade at about $0.34. DOGE has returned to its 50 EMA, a crucial support level, as a result of the sell-off. Even though the drop suggests that momentum is waning, the bigger picture suggests that DOGE may still have room to recover.
There are conflicting signals in on-chain data. Indicating a decrease in speculative activity, open interest in DOGE futures has fallen by 15.35% to $3.58 billion. But over the past day, the volume of derivatives has increased by 108.98% to $12.07 billion. As traders respond to price changes, this implies increased market activity. Interestingly, long positions dominated liquidations; in a single day over $26.98 million was liquidated, indicating traders' overly optimistic outlook.
On a technical level, DOGE's price is getting close to a turning point. The 100 EMA supports the $0.29 level, which acts as a crucial backup area. DOGE might test $0.23, the 200 EMA and a long-term support level, if it breaks below this. On the upside, a technical and psychological barrier at $0.40 represents resistance.
Alex DovbnyaThe next target is close to $0.45, and a breakout above this level might rekindle bullish momentum. Despite recent volatility, DOGE's community and distinct market position offer hope for a rebound. Historically, the asset's capacity to draw in retail investors during downturns has served as a hedge against prolonged drops.
To find out if DOGE is consolidating or continues retracing, traders should keep a careful eye on volume and market activity for the time being. DOGE's current support levels are a critical test. Failure to hold key zones would probably hasten a decline, but a rebound might pave the way for another rally. Traders are encouraged to exercise caution and think about the larger market environment before making choices.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Yuri Molchan
Denys Serhiichuk
Dan Burgin
Vladislav Sopov