Dogecoin Price Prediction as Selling Pressure Eases Amid Looming Breakout

Dogecoin (DOGE) price is down by 1.44% today, September 8, to trade at $0.089 at the time of writing. Despite this drop, the selling pressure towards Dogecoin is easing, and the meme coin remains within a cup and handle setup.

Ad

Ad

Dogecoin’s Spot Selling Pressure Eases

Data from CoinGlass shows that there was $2.92 million more buying volumes for Dogecoin on September 8. The heatmap also shows that the buying volumes outpaced the selling volumes on all exchanges, while Binance had $3.09 million more buy-side flows than sell-side flows.

These volumes suggest that the buying pressure in the spot market is still outpacing the selling pressure despite the ongoing dip in price.

The futures market also shows a similar outlook because the weight funding rate is positive with a reading of 0.0053%. This reading suggests than there are more long buyers than short sellers as futures traders bet that the price of Dogecoin will rally.

However, the open interest has dropped slightly by 3.36% to $1.36 billion, with the drop coming from a surge in long liquidations. Per CoinGlass data, $4.94 million worth of Dogecoin longs have been liquidated in just 24 hours.

Ad

Ad

DOGE ETFs Resume Outflows Amid Macro Uncertainty

Data from SoSoValue shows that there were $343,580 outflows from Dogecoin ETFs in the week between August 31 and September 4. Prior to these outflows, Dogecoin ha recorded two straight weeks of inflows.

The outflows come on the back of uncertainty around whether the Federal Reserve will hike or trim interest rates at the September 16 FOMC meeting.

Data from CoinGape prediction markets shows that 52% of investors are betting that the Fed will hike rates by 25 basis points.

The outflows could also persist if the market sentiment continues to weaken after the fear and greed index dropped from 74 on September 4 to 69 today, September 8.

Dogecoin Price Eyes Breakout From Cup and Handle Pattern

The price of Dogecoin is trading within a cup and handle pattern on the four-hour chart. This pattern supports a bullish long-term DOGE price prediction because it suggests that a rally is cooling off before the next leg starts.

Dogecoin price is facing an obstacle at $0.091. If the meme coin can move above this resistance, a 12% move to the psychological resistance of $0.10 could ensue.

The RSI has a reading of 54, and this shows that the momentum is still favoring bulls despite the recent drop in price. However, the RSI line that is moving below the signal line suggests that this bullish momentum is weak as DOGE struggles below the resistance at $0.091.

The Bollinger bands that are shrinking also suggest that the volatility is easing, and this could cause Dogecoin to consolidate between $0.089 and $0.091.