Dogecoin (DOGE) Correction Remains Due Amid Waning Optimism

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In Brief

  • Dogecoin’s price, despite the short-term recovery, is still vulnerable to further corrections on the daily chart.
  • The investors have been pulling back from the meme coin, which is evident in the OI dropping by 1 billion.
  • Their optimism has been missing since the beginning of the month and could stay that way for some time.

Dogecoin (DOGE) price could soon incur further losses as investors remain skeptical.

Indeed, the meme coin’s investors are largely pessimistic, without increasing investments.

Dogecoin Loses Support

Dogecoin’s price falling below $0.15 accelerated the decline, bringing the doge-themed token to $0.131 at the time of writing. The meme coin is attempting to secure the support of $0.127, a level that has been tested numerous times in the past.

However, it might face some struggle as DOGE will likely drop back soon owing to investors’ waning support.

Over $1 billion has been removed from the Futures market in the last three weeks. Indeed, Dogecoin’s Open interest (OI) dropped from $1.6 billion to $667 million in the span of 20 days. This metric represents the total number of outstanding derivative contracts held by market participants at any time.

Dogecoin (DOGE) Correction Remains Due Amid Waning Optimism
Dogecoin Open Interest. Source: Coinglass

Investors’ actions fall in line with their sentiment as well. Since the beginning of April, DOGE holders have exhibited largely pessimism towards the meme coin. The crypto market conditions and the lack of bullish cues within the Dogecoin network have pulled investors towards bearish expectations.

This is visible in the weighted sentiment, which has been negative for nearly the past month.

Dogecoin (DOGE) Correction Remains Due Amid Waning Optimism
Dogecoin Investors’ Sentiment. Source: Santiment

DOGE Price Prediction: Failing the Hold

Dogecoin’s price in the short-term timeframe is stuck within a falling wedge. However, this bullish pattern was invalidated after DOGE fell through the lower trend line and received support of $0.127. While the meme coin did recover, it will potentially slip back soon.

The altcoin will likely fall to $0.116, which could create the conditions for a further decline to $0.105. This is the potential outcome on the 4-hour chart.

Read More: Dogecoin (DOGE) Price Prediction 2024/2025/2030

Dogecoin (DOGE) Correction Remains Due Amid Waning Optimism
Dogecoin Price Analysis. Source: TradingView

However, a successful retest of $0.127 could give Dogecoin’s price a shot at securing the recovery. If DOGE does so and rises to breach $0.140, it could test the resistance at $0.151, invalidating the bearish thesis and enabling further rise.

Top crypto platforms | May 2024

This article is sourced from the internet: Dogecoin (DOGE) Correction Remains Due Amid Waning Optimism

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