Dogecoin faces sustained selling pressure. The memecoin has traded between $0.09 and $0.1 following a rejection at $0.117 during a broader market pullback. At the time of writing, DOGE traded at $0.09878, down 1.92% in the last 24 hours. The asset has posted lower highs for three consecutive sessions, a pattern that reflects weakening bullish conviction.
Bulls Fail to Reclaim Lost Ground
Dogecoin’s upside momentum broke down after the price peaked at $0.15. Since then, bulls have attempted multiple recoveries. None has succeeded. Each rally has faded before establishing a higher high, and the cumulative result is a price that has slipped beneath the psychologically significant $0.1 threshold.
Buyers have not disappeared entirely. Each time DOGE dipped below $0.1, demand emerged to defend the level. This buying activity has prevented a sharper decline but has not been strong enough to trigger a reversal. The market remains in a fragile equilibrium, with $0.1 serving as both a battleground and a barometer of sentiment.
Spot market inflows have been inconsistent. Sustained institutional or retail buying in the spot market has not materialized in meaningful volumes. This absence of spot-driven momentum limits the probability of a strong near-term recovery without a significant change in market conditions.
Futures Demand Surges Despite Price Weakness
One divergence stands out. While spot demand remains soft, Dogecoin’s futures market has seen a notable spike in activity. According to CoinGlass, futures inflows totaled $591.5 million, while outflows totaled $574.19 million. The resulting net inflow of $18.33 million marks a 161% surge, a clear signal that traders are aggressively positioning themselves for the next major move.
This divergence between spot and futures activity is significant. It suggests that a segment of the market anticipates a directional breakout, even if current price action has not yet confirmed it. Futures positioning at this scale can amplify price movements once a breakout occurs in either direction.
However, increased futures activity alone does not guarantee a bullish outcome. Leveraged positions can unwind quickly, particularly in a market already under sustained selling pressure. If sentiment shifts or macro conditions deteriorate further, a spike in liquidations could accelerate any downward move.
Dogecoin’s technical picture reinforces the bearish case. The Relative Strength Index has remained below 50 for four consecutive days. A sustained RSI reading in this territory indicates that sellers are in control and that buying pressure has not been sufficient to reverse momentum.
The Directional Movement Index adds further weight to this analysis. The DMI dropped to 19, while the ADX climbed to 46 and the ADXR rose to 54. The positive directional index, sitting at its lowest recorded level, signals strong downward momentum. A high ADX reading confirms that the prevailing trend is dominant, not exhausted.
These readings, taken together, suggest that the current downtrend has strength behind it. Trend continuation is the path of least resistance unless a catalyst changes market dynamics.
Two scenarios are now in play. If selling pressure persists and buyers fail to defend $0.1 consistently, DOGE is likely to slide toward the $0.08 support zone. That level would represent a meaningful decline and could trigger further liquidations in the futures market.
Source: https://coinpaper.com/14741/dogecoin-price-prediction-can-doge-recover-to-0-12-or-will-it-crash-to-0-08
