Dogecoin Edges Higher but Faces Weak Holder Interest
Dogecoin (DOGE) rose by over 1% on Wednesday. It stayed above the key support of $0.15704. The price bounced back from a low of $0.15456 earlier in the day. Despite this, data shows weak sentiment among retail and long-term holders.
Declining Demand from Traders and Holders
Dogecoin is the largest meme coin by market value. It is often seen as a speculative asset because of its community-driven nature. A drop in interest from traders and holders could hurt DOGE’s market value.
- Dogecoin futures open interest (OI) has fallen to $1.41 billion.
- This is the lowest in seven months, according to CoinGlass data.
- A sharp rise in coins spent by dormant holders signals profit taking.
- On Tuesday, 377 million DOGE were spent, up from 126 million on Monday.
- Santiment data shows only 56.459% of DOGE supply is held in profit.
- This is down from 83.81% on October 3.
These changes suggest many holders are selling, while weaker hands may exit the market soon.
Technical Indicators Signal Possible Downside for Dogecoin
At press time, DOGE trades above $0.16000. However, moving averages show bearish signals. On Tuesday, the 100-day EMA crossed below the 200-day EMA, forming a Death Cross.
This pattern often signals a strong downtrend. If DOGE falls below $0.15704, support at $0.14270 and $0.12986 could be tested next.
Further bearish signs include:
- MACD trending downward below its signal line.
- RSI at 32, just above the oversold zone, showing selling pressure.
For a positive turnaround, DOGE needs to rise above the October 11 low at $0.17816.
