Dogecoin (DOGE) price correction from last week’s peak triggered a spike in long position liquidations, with traders losing $1.48 million against only $55.85k short positions liquidations. The downtrend implies that DOGE is back to where it was on Friday amid increasing chances of extended correction.
Dogecoin Price Market Movers: 33.4B IOMAP Resistance, Derivatives Open Interest Drop, Whale Accumulation
Dogecoin price fell by 4.1% on Tuesday, to hover at $0.1044. Over the past seven days, it has experienced a cumulative decline of 0.7%. Like Bitcoin and other crypto prices, DOGE price struggled to maintain its previous week’s gains as trading volumes decreased.
The meme coin’s struggles can be attributed to a weak fundamental structure, particularly as IntoTheBlock’s IOMAP model highlights a strong seller congestion zone between $0.1101 and $0.1134. The 31.08k addresses that purchased 33.4 billion DOGE in the range could curtail the uptrend, forcing Dogecoin to settle for consolidation above $0.1 support or extend its leg down to $0.08 in search of liquidity. Unless bulls overcome the potential selling pressure, a rally will remain elusive.
Dogecoin IOMAP | IntoTheBlock
The next few days could be even more difficult if Dogecoin futures’ open interest keeps dropping. According to Coinglass data, a 4% slump in OI to $500 million while the volume increases to $804 million suggests that traders are closing their positions. In other words, there is a potential shift in sentiment or a lack of confidence in Dogecoin price direction.
Dogecoin OI Stats | Coinglass
However, whales seem unfazed by the uncertainty experienced in the market this week as they continue accumulating DOGE. Santiment’s supply distribution metric reveals that holders with between 1 million and 10 million tokens now account for 7.31% of the total supply. At the same time, those with 10 million to 100 million have amplified their holdings to 12.85%. This indicates that investors have a long-term bullish outlook for Dogecoin, encouraging them to increase exposure.
Dogecoin supply distribution | Santiment
DOGE Price Analysis: Wedge Breakout Elusive
Dogecoin price sits below the 20-day Exponential Moving Average (EMA) after failing to break above the 50-day EMA resistance at $0.1127. Sellers have the upper hand at the moment motivated by the Relative Strength Index (RSI) retracement in the neutral region to 45. Should the RSI drop toward the oversold region, DOGE will overshoot short-term support at $0.1, advancing to seek liquidity at $0.1.
Dogecoin price chart | Tradingview
Dogecoin price prediction suggests that as long support at $0.1 holds, a trend reversal is highly likely. Moreover, the falling wedge in the daily range promises a 71.5% breakout to $0.18 if validated. A falling wedge is a bullish reversal pattern validated by a breach of the trend line resistance. Traders will place buy orders above the breakout point and set the stop loss below the trend line. A rapid increase in trading volume will add credence DOGE price uptrend.
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