Why is Dogecoin Price Not Rising?
Highlights
- Dogecoin price is not rising amid a fearful sentiment across the broader crypto market.
- Open interest has also dropped by over $500M in less than two weeks showing reduced speculative activity.
- Dogecoin price could drop to $0.082 if the sentiment fails to change in the favor of bulls.
Dogecoin (DOGE) has gone down by 3.29% in just seven days to trade at $0.102 today, May 25. DOGE has gone down by 12% since May 14, when it was trading at $0.117. But the lack of gains in Bitcoin and the broader market, the dropping open interest, and a bearish pattern explain why the Dogecoin price is not rising.
Bearish Market Sentiment is Pushing Dogecoin Price Down
Bitcoin has gone from $82,000 to $77,000 in just two weeks, and Ethereum is about to drop below $2,100. History shows that Dogecoin does not rise when Bitcoin is going down unless there is a catalyst that sparks the attention of retail buyers.
Dogecoin volumes have also reached $556 million after going down by 28% in 24 hours per CoinMarketCap. Even the recent move by whales buying 525 million DOGE is not making retail interested in buying.
The crypto fear and greed index has a reading of 30, and this shows the market is in fear. That means that Dogecoin price could drop below $0.10 if buyers remain hesitant.
Dogecoin will only rise if Bitcoin goes above $80,000. However, a recent CoinGape Bitcoin price analysis said BTC might go to $71,000 before rebounding, which means DOGE might not rise yet.
Declining Open Interest
The OI reading for Dogecoin has gone from $1.76 billion on May 15 to $1.31 billion today, May 25. It has lost $450 million in ten days only, and that means traders are not confident that Dogecoin will rise
The OI has gone down when the long/short ratio is at 0.91. This ratio reading shows that more people expect the Dogecoin price to go below $0.10 and not reach the January high of $0.15.
Dogecoin price will not rise as long as the OI is dropping. But that rise in OI will happen if long traders start to buy long, and that will support a bullish long-term Dogecoin price forecast.
Technical Analysis Predicts a Dogecoin Price Crash
The rounding top pattern that has appeared on the one-day chart is making buyers shy away from buying Dogecoin. This pattern appears when the upward trend has been exhausted.
The depth of the rounding top is 16%. That means that if Dogecoin price goes below the support of $0.098, it will drop by another 16% and get to $0.082.
But Dogecoin can avoid going to $0.082 if it remains above the support of $0.098. Remaining above $0.098 will need the support of buyers who are currently not willing to step in because of the sentiment of fear.
If Dogecoin avoids the bearish setup that this rounding bottom shows, it might start to rise again and go back to the top of the rounding top at $0.118.
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Frequently Asked Questions (FAQs)
1. Why is Dogecoin price not rising?
2. What is the key support level for Dogecoin?
3. Is the dropping open interest bullish or bearish for Dogecoin?
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