Following the broader crypto market crash, Dogecoin [DOGE] breached the $0.07 support and fell to $0.069, its lowest levels since October 2023. After the slip, the memecoin slightly rebounded and was trading at $0.071, down 1.47% on the daily charts at the time of writing.
Over the same period, the memecoin’s trading volume climbed 32% to $819 million, highlighting a strong sell-side pressure, as traders reduced exposure.
How did Dogecoin hit 2023 lows?
On the 30th of June, DOGE traders exited the market aggressively. Notably, the memecoin’s Sell Volume rose to 674 million on the same day, while the Buy Volume dropped to 594 million, leaving a Buy-Sell Delta of -79 million.
While volume decreased, the same behavior continued at press time, with Sell Volume reaching 112 million. Often, higher sell-side activity increases supply, thus weakening the market, which usually precedes losses on price charts.
Derivatives Sentiment flip
After Dogecoin breached the $0.07 support level, it triggered a wave of liquidations, especially among long positions. According to CoinGlass data, over $5 million in long positions were liquidated, signaling a high level of market leverage.
Typically, heavy long liquidations push traders to close positions quickly to avoid losses. This time, however, DOGE traders acted differently; they were already closing positions aggressively before the price drop. Futures Netflows over the past 24 hours confirm this, with outflows dominating.
On 24-hour timeframes, netflow was negative at $29 million. On short time frames, however, especially after the price drop, more capital flowed into opening new positions.
A look at the 12-hour timeframe, for example, shows that inflow jumped to $163 million while outflow dropped to $152 million. As a result, the Futures Netflow jumped 126% to $10.7 million, a clear sign of higher capital inflows.
Can the memecoin hold?
Dogecoin is currently experiencing strong downside momentum. While some capital flowed into derivatives, sellers in the spot market enjoy total control of the market.
As a result, the memecoin’s Daily Relative Strength Index (RSI) fell further into oversold territory at 21 as of writing.
At such low levels, the momentum indicator warns of extended weakness. Therefore, if spot market conditions persist, DOGE will fail to hold $0.07 and drop towards $0.067.
To invalidate this bearish market bias, the memecoin needs to close above the short-term moving averages at $0.074.
Final Summary
- DOGE breached the $0.07 support, dropping to 2023 levels of $0.069, before slightly rebounding.
- Dogecoin faced extreme selling pressure, and bulls’ attempts in derivatives remain insufficient to trigger an uptrend.
