Dogecoin Looming Plunge: Factors Point Toward An Imminent Significant Decline

Christian Encila

1 year ago

3 mins read

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Dogecoin (DOGE) has recently witnessed a gradual decline in both its price and Open Interest over the past three days. These developments have raised concerns of a bearish sentiment in the futures market.

In a trend that has been unfolding over the last three days, Dogecoin’s price has experienced a steady descent, accompanied by a decrease in Open Interest.

Open Interest refers to the total number of active contracts in the futures market. Its decline is often indicative of waning enthusiasm among traders and investors, suggesting a prevailing bearish sentiment.

OI is a crucial metric in the cryptocurrency market, revealing the number of outstanding contracts that have not yet been settled. A decrease in this key area can signify that traders are closing their positions, potentially anticipating further price declines.

Dogecoin Open Interest data. Source: Coinalyze

DOGE Bearish Sentiment Evident

Despite demonstrating some demand, Dogecoin’s price analysis points towards a further 5% drop. As of the most recent data from CoinGecko, the current DOGE price is $0.070578.

In the last 24 hours alone, the meme coin suffered a 5.0% drop, while its seven-day performance showed a decline of nearly 5%. The downward trajectory intensified as the market structure of DOGE slipped below the $0.075 mark earlier in the week.

The price report noted that amidst the prevailing bearish sentiment, the On-Balance-Volume (OBV) indicator exhibited an opposing trend. Over the past week, the OBV steadily climbed, suggesting an increase in buying pressure.

DOGE market cap at $9.8 billion today. Chart: TradingView.com

This juxtaposition underscores the complexity of market dynamics and indicates that while recent losses have been incurred, the underlying demand for Dogecoin might be stronger than anticipated.

Ancient Dogecoin Whales Resurface

In a surprising turn of events, the crypto community has observed the reawakening of four ancient Dogecoin whales in 2023. These whales, who had maintained a prolonged period of inactivity spanning over nine years, suddenly sprang into action.

Collectively, they have transferred a staggering sum of 6,818,192 DOGE, amounting to approximately $557,157, according to data from Whale Alert.

The emergence of these ancient whales and their substantial movements raises questions about potential market impact. Their actions could potentially inject volatility into the already turbulent Dogecoin market.

While the importance of these movements remains uncertain, they underscore the multifaceted nature and complexities that are deeply ingrained within the realm of cryptocurrency trading.

These fluctuations, whether they manifest as sudden surges or dramatic plunges in market values, serve as a stark reminder of the volatility that characterizes this nascent yet transformative financial landscape.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from iStock

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.