The post Dogecoin’s Persistent Bearish Trend: Ongoing Low Demand and Falling Open Interest appeared on BitcoinEthereumNews.com.

Dogecoin continues to face downward pressure, failing to rebound from recent support levels. The cryptocurrency market shows hesitant buying activity, indicating potential prolonged bearish trends. “With declining on-chain metrics, DOGE traders remain cautious,” stated an analysis from COINOTAG. Dogecoin struggles amidst weak market sentiment and low trading volumes. Explore the latest developments and what they mean for future price movements. Bears Maintain Control as Dogecoin Falls Below Key Support Levels Dogecoin experienced a significant drop, breaching the crucial support zone between $0.123 and $0.128—a price floor held since March. This decline underscores a bearish sentiment reinforced by tepid buying interest. With the daily RSI positioned below the neutral 50 mark and the OBV (On-Balance Volume) showing minimal activity post-drop, the indications of weak momentum are clear. Consequently, the bulls seem unable to rally sufficient demand for a turnaround in the near term. Dwindling Open Interest Highlights Market Disinterest The dramatic gains Dogecoin saw in February and March, with a 176% surge in just over a month, seem a distant memory now. Open Interest initially peaked at $480 million at the start of this rally but has since returned to pre-rally levels, sitting at $478 million by mid-July. This sharp decline denotes diminishing confidence among futures traders. A significant uptick might only be seen if DOGE can convincingly break above key resistance points, attracting speculative interest anew. On-Chain Metrics Indicate Distribution, Warn Against Immediate Investment Current on-chain metrics reveal a concerning trend. Over the past month, Dogecoin’s 30-day MVRV (Market Value to Realized Value) ratio has remained negative, signifying that recent buyers are at a loss. Adding to this, the mean coin age has shown a downward trajectory since late May, with a brief rise for ten days in June. This decline in mean coin age points towards distribution rather than…

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Filed under: News - @ July 14, 2024 9:14 am