The crypto market has been witnessing a choppy trend in recent hours and neither bulls nor bears control the momentum. As a result, the meme coin market is facing liquidation from buyers, resulting in a bearish consolidation. Dogecoin price is currently declining and is approaching the critical support line following rejection. This leaves the question whether DOGE price could revisit the $0.1 level.
Dogecoin Faces Rising Bearish Threat
Over the last 24 hours, Dogecoin price has been facing an increasing bearish threat following rejection at resistance. As a result, liquidations have surged with short-term holders maintaining a profit-taking sentiment. Data from Coinglass reveals that DOGE witnessed a total liquidation of nearly $6 million in the past 24 hours. Of this, buyers liquidated significantly, amounting $4 million worth of positions.
Dogecoin has dropped about 6.8% over the past week, making it the weakest performer among the top 10 cryptocurrencies. This decline was triggered due to low interest from retail traders, alongside poor inflow volume into Dogecoin-focused ETFs.
Dogecoin OI
Data from CoinGlass shows that Dogecoin’s futures open interest has fallen to $1.77 billion, down from $1.96 billion just a week ago. This suggests that many retail traders are stepping back, choosing to stay on the sidelines rather than place new bets on DOGE’s price movement.
If this lack of participation continues, a solid price rebound may be unlikely in the near term. Continued declining trend in open interest could push Dogecoin back toward its monthly low of $0.11 in the coming days or weeks.
The bearish outlook is further strengthened by bearish ETF activity. Last Friday, Dogecoin spot ETFs saw an inflow of around $404,000, even as overall market volatility remained high.
According to SoSoValue, U.S. spot Dogecoin ETFs recorded their biggest inflow since launch, $2.3 million on January 2, followed by $1.6 million on January 5. However, recent inflows have slowed considerably, signaling rising bearish threat for the leading memecoin.
What’s Next for DOGE Price?
Dogecoin was rejected near the $0.16 resistance level and has since pulled back toward its moving averages. In recent days, the price has dropped below the EMA trend lines and is retesting immediate support channels. As of writing, DOGE price trades at $0.14, declining over 0.6% in the last 24 hours.
DOGE/USDT Chart
The 20-day EMA, currently around $0.14, is slowly trending downward, while the RSI sits slightly below the midpoint. This suggests sellers are currently controlling the price momentum. If DOGE faces another long-liquidation, it might drop below the moving averages. As a result, Dogecoin may continue trading sideways between $0.12 and $0.16 for a while. A confirmed drop below $0.12 could push the price toward $0.1.
On the other hand, a bullish trend might be triggered if the market dismisses the breakdown below the $0.12 support level, opening the door for a move toward $0.19.
