Traders move 0 million as DOGE mirrors Bitcoin’s pullback
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Traders move $380 million as DOGE mirrors Bitcoin’s pullback

Posted on by Amelia Pressman

  • Dogecoin price plunged towards $0.40 on Tuesday, down 16% on the day.
  • Open interest in DOGE fell by $380 million as traders reacted to Monday’s failed breakout of $0.50.
  • Technical indicators show that DOGE price is below its 20-day moving average, indicating a continued decline in market demand.

Dogecoin price continues to consolidate below the $0.40 mark on Tuesday, down 16% on the day.

After several failed attempts to break through the $0.50 mark last week, speculative traders have moved to reduce their DOGE positions.

Is the Dogecoin price at risk of a major correction phase?

Dogecoin price fell by $0.40 due to profit-taking

Dogecoin ended the month up 175%, becoming one of the best-performing mega crypto assets in November.

After prices peaked at $0.45 around November 22nd, DOGE struggled to gain traction as traders began taking profits.

On Monday, the global crypto market received a major boost from several bullish catalysts, including Microstrategy’s $1.4 billion BTC purchase and WisdomTree’s filing for the Ripple (XRP) ETF.

Dogecoin price (DOGE) vs. Bitcoin price (BTC) | December 3, 2024


However, while the likes of XRP, Monero (XMR) and Litecoin (LTC) topped the top gainers charts, Dogecoin and Bitcoin prices remained subdued below the $0.50 and $100,000 milestones, respectively.
Dogecoin price fell significantly by 16% at press time on Tuesday, reaching $0.40 at press time after peaking at $0.45 during Monday’s rally.

The chart above shows how Dogecoin mirrored Bitcoin’s 5% decline in the last 24 hours.

Dogecoin traders withdrew $380 million after failing to breakout from $0.50

After hitting a 3-year high of $0.48 on November 23, Dogecoin price was unable to continue rising.

And after a week of stagnation, short-term traders are in the process of reducing their DOGE positions.
To lend credence to this narrative, Coinglass’ open interest chart below tracks the value of active Dogecoin futures contracts to provide insight into how traders are reacting to key market events.

Dogecoin Price vs. DOGE Open Interest | Source: Coingecko

The chart above shows that open interest in DOGE fell from $3.88 billion to $3.50 billion in the last 24 hours.

This recorded outflow of $380 million represents a 10% decline in total capital, while the Dogecoin price has fallen by more than 16% over the same period.

When the price of an asset falls faster than open interest, it often indicates that traders are closing long positions quickly.

As bulls lose confidence in DOGE’s short-term recovery potential, the $0.40 support could be at risk in the coming days.

DOGE price prediction: $0.40 support at risk

Dogecoin continues to send bearish signals as bulls struggle to hold the $0.40 support level.
The Donchian Channel (DC) DOGE is currently trading below the midline ($0.41), signaling growing bearish momentum. A multi-day close below $0.41 could trigger further downturns towards the next key support level at $0.34.

Dogecoin price prediction | DOGEUSDT

The volume delta data shows a negative net value of -89.44 million, indicating stronger selling pressure compared to buying activity.

This imbalance increases the possibility of a continuation of the downtrend. A break below $0.40 could trigger further liquidations and accelerate losses towards the $0.34 support zone.

On the other hand, if DOGE manages to hold $0.40 and climb above $0.45, bulls could attempt to force a retest of the psychological resistance at $0.50.

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