Key takeaways
- DOGE is the worst performer among the top 10 cryptocurrencies by market cap, down 7.5% in the last 24 hours.
- The bearish performance comes as BTC and other major cryptos underperform.
DOGE leads the market flush
The cryptocurrency market has underperformed over the weekend, with Bitcoin’s price dropping below the $108k mark. As usual, memecoins suffered the heaviest blow, with Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) all recording huge losses in the last 24 hours.
On-chain and derivatives data suggest that large wallet investors and retailers are reducing their risk exposure to Dogecoin and other leading memecoins, boosting the supply pressure.
Data obtained from CoinGlass shows the futures Open Interest (OI) for Dogecoin, the notional value of all outstanding futures contracts, is down by 2% over the last 24 hours, reaching $1.70 billion. A decline in OI value suggests that the traders are reducing risk exposure by lowering leverage or closing positions.
Furthermore, on-chain data reveal that interest from large wallet investors is decreasing in memecoins. DOGE investors with over 100 million tokens have remained flat since the start of the month.
DOGE could retest the monthly support at $0.15
The DOGE/USD 4-hour chart is bearish and inefficient as the memecoin has failed to rally in recent weeks. The technical indicators are extremely bearish at the moment, suggesting further selling pressure.
At press time, DOGE is trading at $0.175, down 7.5% in the last 24 hours. The bulls failed to hold the price above the $0.17816 support level, marked by the October 11 low, with current price action suggesting further downward movement.
A daily close below this level could see DOGE dip towards the $0.15009 level, marked by the October 10 crash. The MACD lines are within the negative territory, while the RSI of 40 both suggests a bearish bias.
However, if the bulls push DOGE’s price above the $0.17819 level by the end of the day, the memecoin could hit Sunday’s high at $0.18884 over the next few hours.
