Dogecoin Price Holds Above $0.20 Despite Market Pressure
Dogecoin (DOGE), the top meme coin by market value, trades above $0.20 as of Monday. Earlier, it reached an intraday high of $0.2095. However, profit-taking and mixed sentiment in the crypto market trimmed gains. Ongoing US-China trade tensions and rising inflation also add uncertainty. Delays in approving Dogecoin spot ETFs, partly due to the US government shutdown, may keep prices near $0.20 support.
DOGE Faces Weak Demand and Profit-Taking
A large sell-off on October 10 caused losses for many traders. Dogecoin futures Open Interest (OI) dropped to $1.81 billion on October 11 from a $5 billion monthly peak. OI shows the total value of open futures contracts. Though it recovered slightly to $1.95 billion, it remains well below earlier highs. A growing OI is needed to keep the uptrend as more traders take long positions.
The Dogecoin Spent Output Profit Ratio (SOPR) recently fell to 0.97, indicating some holders are selling at a loss or break-even. SOPR above 1 means selling at a profit, while below 1 signals distress selling. When SOPR dips below 1, weak holders exit, reducing selling pressure and possibly signaling a market bottom.
Technical Outlook: Bulls Target Short-Term Recovery
Dogecoin is bouncing back above $0.20 support. Bulls aim for a daily close above the 100-day Exponential Moving Average (EMA) at $0.2038. The Relative Strength Index (RSI) stands at 59, showing increasing bullish momentum. Traders watch the Moving Average Convergence Divergence (MACD) for confirmation, needing the blue line above the red signal line to validate the uptrend.
Rising interest in Dogecoin may lead to a stronger breakout. Still, traders should be cautious of profit-taking near $0.2095 and the 200-day EMA resistance at $0.2144.
