Will Dogecoin Fall to $0.08? Selling Fear Spreads

▲ Dogecoin (DOGE) ©

Dogecoin has finally fallen below the psychological support level of $0.1000, intensifying fears of a sharp decline. Amidst Bitcoin's sharp drop and a broader sell-off in the cryptocurrency market, approximately $10 million worth of liquidations occurred in the Dogecoin futures market alone in a single day, sounding additional alarms for further decline.

According to investment specialized media FXStreet on May 28 (local time), Dogecoin (DOGE) continued its bearish trend by falling below $0.1000 on that day. DOGE fell by more than 2% in one day, and the media analyzed that further downside is likely given the current technical trend.

The market shock expanded with Bitcoin's weakness. As Bitcoin fell below $74,000, approximately $900 million worth of liquidations occurred across the entire cryptocurrency market in the last 24 hours, directly putting downward pressure on Dogecoin. According to CoinGlass data, a total of $9.95 million worth of liquidations were recorded in the DOGE futures market, of which approximately $9 million were long position liquidations. The media explained that the collapse of long positions is rapidly dampening short-term investor sentiment.

Open Interest also decreased. DOGE futures open interest fell by approximately 2% in one day, bringing the total contract size down to around $1.29 billion. This was interpreted to mean that market participants are rapidly reducing their positions. The media diagnosed that Dogecoin is currently overly correlated with Bitcoin market sentiment.

The technical trend remains negative. DOGE has continued its decline for five consecutive trading days, trading below the 50-day Exponential Moving Average (EMA) of $0.1033, the 100-day EMA of $0.1060, and the 200-day EMA of $0.1242. The Relative Strength Index (RSI) is at 36 on a daily basis, not yet entering the oversold zone, and the Moving Average Convergence Divergence (MACD) maintains a bearish trend below the signal line. The media analyzed that selling pressure continues to dominate the current chart structure.

The key market support level is $0.0879. The media explained that this level coincides with the low of February 11 and serves as a critical defense line. If even this price level breaks down, DOGE could open up the possibility of a further decline to $0.0800. Conversely, for a short-term rebound, it is first necessary to recover $0.1000 and break above the 50-day and 100-day EMAs, the analysis concluded.

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