- The value of Dogecoin has dropped by double digits over the past seven days
- The decline in open interest in futures contracts indicated an exit of liquidity from the financial derivatives market
The market leading mimecoin Dogecoin [DOGE] It extended its seven-day losing streak as it failed to respond favorably to the hype after the halving. At press time, the value of the altcoin stood at $0.15, recording a slight price increase of 0.13% over the past 24 hours, according to CoinMarketCap.
In fact, the price of DOGE has fallen by 10% over the past week, making it the only leading coin to see a double-digit price drop in the past seven days.
What can coin holders expect?
On altcoin price charts, bearish readings remain significant. For starters, DOGE price has crossed below the 50-day Small Moving Average (SMA) and headed below the 200-day SMA, at press time.
DOGE's decline below the 50-day simple moving average confirmed the shift in market sentiment from bearish to bullish. As it heads towards the 200-day simple moving average, memecoin price may be approaching a long-term support level of $0.1.
Moreover, the Awesome Oscillator, which measures DOGE market momentum, has posted red chart bars heading downwards, at the time of writing. This indicator has maintained this trend since April 14. When an asset's Great Oscillator heads this way, it is an indication that the selling pressure is high.
The decline in DOGE's Relative Strength Index (RSI) below its neutral line confirmed the decline in demand for memecoin. At press time, the Relative Strength Index for DOGE was reading at 42.87. Simply put, this value indicates that market participants prefer currency selling over accumulation.
In addition, the currency's MACD line (blue) has stabilized below its signal (orange) and zero lines at press time. This crossover highlighted that DOGE's short-term trend is weaker than its long-term trend.
Realistic or not, here is the market cap of DOGE in terms of BTC
Traders view this as a signal to exit their long positions and take short positions.
Another sign that long positions may not be beneficial in the long term is DOGE's Parabolic SAR position at press time. The points that make up the indicator are located above the price candles.
Market participants often interpret this to mean that the market is in a downtrend and prices will continue to fall.
Source: DOGE/USDT on TradingView
Finally, in the currency derivatives market, futures open interest fell to a 30-day low. according to Quinglass Data: Open interest in DOGE futures was $953 million, at the time of writing.
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