Dog-themed cryptocurrency Dogecoin is performing a crucial support test, having reached a low of $0.131 in the early Monday session.
At press time, Dogecoin was trading down 2.04% in the last 24 hours to $0.132 as the majority of cryptocurrencies traded in red following Bitcoin's drop below $90,000 over the weekend.
Dogecoin fell from a Dec. 9 high of $0.153, marking four out of five days in the red since this date. Amid the drop, the $0.14 key support level failed, with eyes on $0.13 as the next crucial short-term support level.
According to CoinMarketCap data, Dogecoin trading volumes have increased 77% in the last 24 hours to $1.08 billion as traders adjusted their positioning as the market fell.
What comes next?
Analysts indicate that Dogecoin might be on the verge of a textbook capitulation event as increased volume coupled with support failure might mark short-term exhaustion.
Dogecoin is now at a crossroads, with indicators highlighting a mixed bag for traders as to where it heads next.
The $0.13 psychological level is now viewed as the most important short-term support, with a sustained hold above here favoring range-trading rather than continuation. If the $0.14 level is reclaimed, Dogecoin would target $0.15 once again. Failure below $0.131 might lead to a retest of Oct. 10 flash crash low of $0.09.
On the other hand, DOGE has seen an increase in notional open interest (OI) over 24 hours, reaching 10.80 billion DOGE, the highest since Nov. 20 alongside moderately positive funding rates, offering quiet hope to bulls.
