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- DOGE is down about 6% and is now trading below $0.08.
- Bearish action comes when retail traders reduce their exposure to the market.
DOGE maximizes losses after failure
Dogecoin (DOGE) continued to face bearish challenges on Tuesday, trading below $0.08 after failing to break the key resistance area.
The meme currency is now down more than 10% in the last week, which shows a strong decline in both existing and emerging markets.
Market data shows that participation in Dogecoin remains weak. According to SoSoValue data, spot Exchange Traded Funds (ETFs) linked to DOGE have shown little activity since the beginning of June, which indicates a decrease in the demand of large investors.
The continuation of negative ETFs or the absence of them can increase the value of prices, increasing the risk of additional volatility.
The sentiment surrounding Dogecoin also weakened on social media. Santiment’s Social Dominance metric, which tracks the portion of cryptocurrency discussions focused on DOGE, fell to 0.095% on Tuesday. This level is close to the beginning of June and shows a significant decrease in market interest.
The decline reflects the waning interest among traders, often the most active in meme-based cryptocurrencies.
Futures and options also encourage caution. CoinGlass reports that Dogecoin’s long-to-short ratio fell to 0.80 on Tuesday, near its lowest level in a month.
The ratio below 1 shows that many traders are placing lower prices than their gains, indicating the growth of bearish sentiment in the derivative market.
DOGE cost structure: Key values
Dogecoin traded at around $0.07948 at the time of writing, maintaining a temporary trend.
The price remains below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which are combined between $0.093 and $0.114, reinforcing downward pressure.
Momentum indicators present a mixed picture. The Relative Strength Index (RSI) is at an oversold level near 29, which means that selling is stretched.
However, the Moving Average Convergence Divergence (MACD) only shows partial stability, not a definite reversal.
On the upside, immediate resistance is seen near $0.0885, followed by the 50-day EMA at $0.0926 and the 100-day EMA at $0.0982.
A strong recovery would require a break above the downtrend near $0.1000, with further resistance at $0.1027 and the 200-day EMA around $0.1138.
On the downside, the utility share remains at a recent low for the year at $0.0776. A definite break below this level could open the door to $0.0700, where buyers could try to enter the market again.
