Dogecoin (DOGE) Price Prediction: DOGEUSD Bulls Fight Back After the Memecoin Crashes 23% to a Daily Low of $0.08

The crypto market crash ran over the canine-themed token Dogecoin, forcing it to erase all its gains since Feb. 2024.

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The crypto market crash has taken a toll on Dogecoin, wiping out all its gains since Feb. 2024. The steep drop comes amid a broader sell-off in the cryptocurrency market, driven by macroeconomic concerns and increasing regulatory scrutiny.

Moreover, investors' risk aversion, fueled by rising interest rates and a strengthening US dollar, has also contributed to the downward pressure on digital assets like Dogecoin.

Recent data for Dogecoin shows a concerning trend, with a decrease in large holders. Addresses holding over one million native units have shown stagnation or decline, a pattern also observed in the 100,000, 10,000, and 1,000 unit categories. This decrease indicates a drop in confidence from major investors, potentially signaling a bearish sentiment in the market.

Compounding the negative outlook is the nose-diving open interest. Open interest, which represents the total outstanding derivative contracts, decreased sharply along with the price of DOGE.

The decline usually indicates a reduction in market participation and interest, especially from institutional players or major traders. The drop in open interest, coupled with a falling price, suggests a lack of optimism for a near-term recovery, as participants are either closing positions or hesitant to enter new ones.

Additionally, the OI-Weighted Funding Rate has been trending down. A falling funding rate indicates lower costs for maintaining long positions, which often suggests an increase in short positions or decreased demand for DOGE.

However, later in the day, Dogecoin bulls stepped in to help the memecoin recover after the DOGE price crashed nearly 23% to hit a daily low of $0.08. The price drop marked the largest single-day rout since April earlier this year.

If the downtrend continues, the DOGE price is set to drop to the support at $0.087. Furthermore, if the selling continues, the DOGEUSD pair is likely to drop to the support at $0.076 before recovering.

On the other hand, a recovery from here would see the DOGE price face resistance at $0.106 and $0.123, where the 50-day EMA (purple wave) reinforces the 0.786 FIB resistance level.

notably, Dogecoin’s relative strength index (RSI) remained in the oversold territory, registering a value of 27.95 on the daily timeframes. While this usually serves as a bullish reversal signal, in this case, the oversold RSI might have limited influence on DOGE’s price action.

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