Dogecoin Price Prediction: DOGE Breaks Key Support as Spot Outflows Hit $55M

Dogecoin (DOGE) price has dropped below a crucial support level amid a surge in selling pressure. At press time, Dogecoin traded at $0.086 after a 1.82% decline in 24 hours.

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Dogecoin Spot Outflows Surge Amid Intense Selling

Data from CoinGlass shows that Dogecoin has amassed $55 million in spot outflows in the four days leading up to October 8.

These outflows suggest that the selling pressure is outweighing the buying pressure as the crypto market sentiment continues to weaken after Bitcoin (BTC) fell below $84,000 following the release of hawkish FOMC minutes.

Besides spot selling, long liquidations have also fuelled the drop in Dogecoin price to the lowest level in more than two weeks.

Per CoinGlass data, Dogecoin has recorded $16 million in long liquidations within two days.

The added pressure from long liquidations also comes despite weakening demand for Dogecoin ETFs. Data from SoSoValue shows that Dogecoin ETFs have not recorded any inflows in October.

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Open Interest Falls Despite Aggressive Short Positioning

Data from CoinGlass shows that Dogecoin’s open interest has dropped from $1.53 billion to $1.38 billion. This drop suggests reduced demand for futures positions on Dogecoin as traders minimize their risks.

However, the recent drop in Dogecoin price has also attracted short sellers betting that the top meme coin will edge lower.

Dogecoin’s long/short reading continues to fall further below 1 and stood at 0.89 at the time of writing as traders continued to open more short accounts.

Still, the Binance futures market shows a long/short reading of 2.41, as long accounts on Dogecoin on the exchange outweigh the short-selling accounts.

On OKX, there are four times more long accounts than short accounts on Dogecoin.

Dogecoin Price Prediction as Key Support Breaks

Dogecoin price has dropped below the support at the 61.8% Fib of $0.092, as seen on the one-day chart.

The meme coin now eyes a retest of the next support at $0.083, with a breach of this level set to fuel the downtrend towards $0.078.

The RSI reading of 42 shows that the future Dogecoin price outlook is in bearish territory. This RSI has also yet to enter the oversold level below 30, suggesting that there is still room for Dogecoin’s price to fall further.

However, the ADX line that is tipping south with a reading of 25 suggests that the downtrend is weak despite Dogecoin price falling to a two-week low.

If sellers become exhausted, Dogecoin price will have to break resistance at the 61.8% Fib to confirm the return of a strong uptrend.