- Dogecoin’s value has fallen by double digits over the past seven days
- The declining open interest in Futures indicated that liquidity would disappear from the derivatives market
The leading memecoin Dogecoin on the market [DOGE] extended its seven-day losses as it failed to respond positively to the post-halving hype. At the time of writing, the altcoin was valued at $0.15, representing a small price increase of 0.13% over the past 24 hours. CoinMarketCap.
In fact, DOGE’s price has fallen 10% over the past week, making it the only leading memecoin to see a double-digit price drop over the past seven days.
What can coin holders expect?
On the altcoin price charts, bearish readings remain significant. For starters, at the time of writing, DOGE’s price was below its 50-day minor moving average (SMA) and falling below its 200-day SMA.
DOGE’s decline below its 50-day SMA confirmed the shift in market sentiment from bearish to bullish. As it targets its 200-day SMA, the memecoin’s price may approach a long-term support level of $0.1.
Additionally, the Awesome Oscillator, which measures DOGE’s market momentum, showed downward-sloping red histogram bars at the time of writing. This indicator has continued this trend since April 14. When an asset’s Awesome Oscillator moves this way, it is an indication that selling pressure is significant.
The decline in DOGE’s Relative Strength Index (RSI) below the neutral line confirmed the decline in demand for the memecoin. At the time of writing, DOGE’s RSI stood at 42.87. Simply put, this value suggested that market participants favored the sell-off of coins over accumulation.
Moreover, at the time of printing, the coin’s MACD line (blue) was below the signal (orange) and zero lines. This crossover highlighted that DOGE’s short-term trend is weaker than its longer-term trend.
Realistic or not, here is DOGE’s market cap in BTC terms
Traders see this as a sign to exit their long positions and take short positions.
Another indication that long trades may not be beneficial in the long run was the position of DOGE’s Parabolic SAR at press time. The dots that make up the indicator rested above the price candles.
Market participants often interpret this as a sign that a market is in a downtrend and that the price decline will continue.
Source: DOGE/USDT on TradingView
Finally, in the currency’s derivatives market, open interest on futures fell to a 30-day low. According to Mint glass According to data, DOGE’s open interest on Futures was worth $953 million at the time of writing.