Dogecoin Nears $0.17 After Recent Losses
Dogecoin (DOGE) is close to the $0.17000 level on Wednesday. The coin lost 5% the day before. This marks the third week of losses in a row for DOGE. On-chain data shows old tokens are moving again. This suggests investors are taking profits. Futures data shows a drop in DOGE contracts. Traders remain cautious and avoid risks.
Investors Sell Old Dogecoin Holdings
Dogecoin is losing some investor confidence. Data from Santiment shows the average age of DOGE coins dropped from 404 days on November 2 to 375 days now. This means coins held for over a year are being moved or sold. Coins aged between one and two years reached a high selling volume of 693 million DOGE this Monday. This is the largest single-day sale since May 9, when 2.56 billion DOGE were spent.
The moving of these old coins lowers the mean coin age. This often signals a possible price correction. Retail interest in Dogecoin is also falling. Data from CoinGlass shows DOGE futures Open Interest (OI) fell to $1.43 billion from $1.48 billion the previous day. Lower OI means fewer long positions and less risk appetite among traders.
Dogecoin Faces Downside Pressure
DOGE failed to rise above $0.18527, a key resistance seen on October 11. This caused a 5% drop on Tuesday. Currently, DOGE struggles to stay above $0.17000. Bears are targeting $0.15704, a support level from June 27. If buyers do not step in, prices may fall further towards $0.12896, the low from April 7.
Technical indicators show selling pressure growing. The RSI is at 40 on the daily chart, down from neutral levels. The MACD is moving towards a bearish crossover, hinting at stronger downward momentum. On the upside, if DOGE climbs above $0.18527, it could rise to the 50-day EMA at $0.19914.
