$4B DOGE Sell-Off Risk Looms if Dogecoin Price Breaks this Support

Dogecoin price has dropped from $0.115 to $0.1 over the last four days, marking a 10% decline. The bearish reversal, accompanied by reduced trading volume, suggests that selling momentum might be losing steam, potentially setting up a price reversal. Will the International Dog Day celebration boost buying pressure on Dogecoin, or are sellers gearing up for a counterattack?

Futures Traders Uncertain on the Future of Dogecoin Price

Data from Coinglass shows that the DOGE open interest (OI) and price increased slightly over the last 24 hours. This suggests that future traders are entering long positions, betting that the DOGE price will rise higher.

Additionally, according to the Coinglass Liquidation Map, a larger cumulative Short liquidation leverage than longs. However, the imbalance is very small, indicating there may be indecision between bulls and bears in the market concerning the Dogecoin price.

Nevertheless, the Crypto Derivatives Visualizer (CDV) data showing traders currently entering longs shows that bullish sentiment is gradually dominating the market as traders shift to an optimistic bias.

CVD and OI Suggest Seller Exhaustion, RSI Remains Bullish

An analysis of the cumulative volume delta (CVD) change and OI shows that both metrics dropped 0.59% and 3.50% over the last three days, signaling that traders have been closing their long positions since Friday.

However, given the data from Coinglass CDV, traders may be re-entering longs once more after the price of DOGE finds support around the current price of $0.1090.

The Relative Strength Index is trending upward, which signifies that the asset is bullish. The RSI line is also above the 14-day smoothing moving average, which shows that the bullish momentum for DOGE is still intact. At 54.14, the RSI predicts that the Dogecoin price may rise higher before it reaches the overbought level. 

Bullish Dogecoin Price May Save Over 94,000 Holders

Meanwhile, over 94,000 Dogecoin holders are on the edge of their seats as they await to see the direction the DOGE price will take. According to data from IntoTheBlock, these investors collectively hold over $4 billion in DOGE, and if the trend remains bullish, they may shift into profitability.

DOGE price prediction shows that if bulls prevail and these coins become profitable, the total amount of Dogecoin supply in profit will increase from 51.44% to 75.57%, making DOGE one of the top profitable crypto assets to hold, aside from Bitcoin (BTC) and Ethereum (ETH).

On the contrary, if the Dogecoin price falls below the $0.1 psychological support, a staggering 38.12 billion DOGE could enter out-of-the-money territory. This substantial supply of DOGE in a loss position may trigger panic selling, accelerating bearish momentum as speculative investors exit the market in fear.

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