Dogecoin drops to $0.2168 amid a 6.74% pullback. With futures liquidations up 12.53% and open interest falling, the bullish pattern is at risk of breaking down.
As the crypto market undergoes a pullback, meme coins struggle to hold above key support levels. Dogecoin is down 6.74%, testing its 200-day EMA at $0.2168. Will the increasing supply pressure undermine Dogecoin’s short-term bullish pattern?
Dogecoin Price Analysis
On the daily chart, Dogecoin’s price action remains in a broader downtrend, with a strong descending resistance trendline in place. This trendline reflects the lower-high formation that has persisted since December 2024.
However, short-term consolidation below the 50% Fibonacci level at $0.2566 has formed an inverted head-and-shoulders pattern. The neckline of this bullish pattern coincides with the 50% Fibonacci level, the $0.25 supply zone, and the descending trendline.
Currently, Dogecoin is testing the 200-day EMA at $0.2168, falling below the 38.20% Fibonacci retracement level at $0.2227. Despite the intraday decline, the price remains within the potential right-shoulder phase of the bullish pattern.
A breakdown below the 100-day EMA at $0.2060 would invalidate the bullish setup and increase the downside risk toward $0.1869, which is aligned with the 23.60% Fibonacci level.
On the bullish side, a breakout above the neckline could lead to a 95% rally in Dogecoin, targeting the $0.50 mark.
Dogecoin Futures Turn Bleak as Long Liquidations Cross $12 Million
Amid the drop in spot prices, Dogecoin futures have taken a significant hit. Over the past 24 hours, open interest has declined by 1.55%, falling to $2.64 billion. Additionally, long liquidations hit $12.53 million in the same period.
The drop in open interest alongside rising long liquidations signals growing bearish dominance in Dogecoin futures.
Currently, the long-to-short ratio stands at 0.9612 over the past 24 hours, reflecting slight bearish sentiment. Moreover, the open interest-weighted funding rate has dropped to 0.0014% from a recent peak of 0.0097%, highlighting a sharp decline in bullish intent to hold long positions.
Altogether, derivatives data indicate the potential for a steeper correction in Dogecoin if market volatility persists.
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