Dogecoin drops for fourth day as $420M sold

Dogecoin (DOGE) continued its downward trajectory on Thursday, trading below $0.0850 for a fourth consecutive session. The cryptocurrency has failed to reclaim the $0.09 threshold amid waning market interest.

Withdrawal in futures market intensifies as attention shifts

Recent trends in the crypto market have seen investors moving toward real-world asset tokenization, privacy-centric solutions, and artificial intelligence-related projects. This pivot is believed to have dampened momentum for meme coins like Dogecoin.

Data from CoinGlass shows that open interest in DOGE futures dropped by 7% over the past 24 hours, declining to $1.10 billion. The decrease reflects reduced participation from investors and traders.

Liquidation statistics reveal that positions betting on price increases are under mounting pressure. In the same period, $4.81 million in long positions were forcibly closed, compared to $577,030 in shorts. Nonetheless, with the funding rate remaining positive at 0.0056, part of the market is still not ruling out an upside recovery.

Large wallets drive heightened sell pressure

According to data shared on X by crypto analyst Ali Charts, major wallets sold 420 million DOGE over the past week. This significant sell-off may have contributed to the increased downward pressure on prices.

ETF products tracking Dogecoin recorded $200,580 in inflows on Wednesday. While this signals movement after a ten-day lull, the amount is too small to shift overall market sentiment on its own.

Technical indicators point to ongoing weakness, but reversal scenarios monitored

On the technical side, DOGE continues to trade below its 50, 100, and 200-day exponential moving averages—levels now acting as resistance in the short term. The 14-day Relative Strength Index hovers around 35, indicating muted buying appetite but not yet entering oversold territory.

The MACD indicator is nearing its signal line, suggesting that while the downward momentum persists, further declines may be limited for now. Immediate support is seen at the June 6 low of $0.07766, with additional levels at $0.0700 and $0.0641. On the upside, resistance is found at $0.09, near the 50-day moving average at approximately $0.094, and the 100-day average at $0.0997.

Despite the prevailing weakness, some analysts are still monitoring potential reversal signals. Emilio Crypto Bojan noted that on the four-hour chart, the 50-period moving average is nearing a crossover above the 200-period average, which could form a “golden cross” pattern. If this structure is confirmed, resistance targets could shift to $0.18, $0.29, $0.45, $0.58, and $0.70.

Meanwhile, analyst Javon Marks focused on a recurring staircase pattern in the weekly chart. Marks argued that this setup resembles the consolidation phases preceding strong rallies in 2017 and 2021. While his study points to a potential move above $2.80 as a target, he emphasized that the scenario is based on technical analysis and does not guarantee a similar price move.

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