Dogecoin [DOGE] extended its bearish streak as geopolitical tensions escalated following Israel’s attack on Iran.
After rejecting resistance at $0.106, DOGE has faced strong downward pressure, closing at lower lows for three consecutive sessions.
The weakness erased recent gains, driving the price down to $0.088. In addition, the memecoin slipped below its short‐term EMA20 at $0.098, underscoring the intensity of the downside momentum.
At press time, DOGE traded at $0.089, down 10.48%, extending its bearish structure.
On-chain activity plummets 78%
DOGE’s weakened structure has persisted because of reduced on-chain activity and falling adoption levels. In fact, some holders have sold and left the market entirely. Santiment data showed that on-chain activity has fallen significantly.
At the time of writing, the memecoin’s Price DAA Divergence dropped to a two-month low of -46%. Such extremely low levels indicated reduced demand and network usage, with fewer users actively engaging with the network.
As such, Dogecoin lacked adequate organic demand, a necessity for any gains. As a result, Daily Active Addresses have plunged 78.34% from 87.7k to 19k in February.
The decline in active users suggests that most traders have either closed positions or are sitting on the sidelines.
Sellers totally dominate the market
Amid rising geopolitical tensions and a massive sell-off in the crypto market, DOGE investors have also intensified their selling pressure.
On the Futures side, the memecoin recorded a major sell-off, recording $736 million in outflows compared to $659 million in inflows. As a result, Futures Netflow plunged 418% to -$77.39 million, a clear sign of aggressive selling.
With sellers dominating futures, it signaled reduced exposure, as they feared more losses. At the same time, with the drop below $0.09, the liquidation rate skyrocketed.
Dogecoin recorded $6.5 million in Long position liquidations, with $3.3 million in longs liquidated over the past four hours.
On the spot, the memecoin saw 976.75 million in Sell Volume compared to 928 million in Buy Volume. As a result, Dogecoin saw a negative Buy Delta of -48 million, a clear sign of aggressive spot selling.
Often, such sellers’ dominance across all market participants accelerates downward momentum, leading to lower prices.
What’s next for DOGE?
Dogecoin is currently under intense selling pressure amid the broader crypto market sell-off. At the same time, the memecoin’s fundamentals have weakened, creating space for a market freefall even with little trigger.
As a result, the negative index of Directional Movement Index (DMI) jumped to 54 as of writing, while the positive index fell to 28. These momentum indicators showed strong bearish momentum and a high likelihood of continuation.
Therefore, if the market sell-off persists, DOGE could drop towards $0.0800. For a trend reversal, the memecoin needs to close above its short-term moving averages, the 20- and 50-EMAs.
In doing so, the memecoin will be strong enough to reclaim and hold its critical $0.1 level.
Final Summary
- DOGE dropped 10.48%, breaching $0.09 support, hitting a low of $0.088.
- Dogecoin’s downtrend continued amid intense selling pressure and weakened on-chain activity.
