Dogecoin (DOGE) Price Continues to Face Bearish Market Sentiment, Futures Market Signals Strong Bearish Sentiment

Dogecoin's price continues to face bearish market sentiment, which has resulted in the token failing to continue its uptrend. Moreover, bearish cues

Dogecoin (CRYPTO: DOGE) price has been showing a downward trend lately. The price has been hovering around $0.11 for several days and the bullish momentum is weakening. Technical indicators show that bearish pressure remains and DOGE is likely to break lower.

According to recent market data, open interest in Dogecoin futures has decreased significantly, especially after the peak in mid-April. This decline shows that speculative interest in derivative markets has decreased and investors are closing their long positions as they lose expectations of a recovery in prices.

The fact that the decrease in open interest is constantly correlated with the decrease in prices emphasizes the bearish trend of the market.

Furthermore, the OI-weighted funding rate has been falling increasingly since early August, indicating the increasing dominance of short positions. While investors expect further declines, the lack of consistently positive funding rates also indicates the weakness of the uptrend. Unless there is a significant change in these metrics, it seems likely that the DOGE price will continue to fall in the coming period.

The combination of the continuous decline in open interest and negative funding rates makes it clear that DOGE's bear momentum is strong and will continue without a significant reversal in the market trend.

DOGE price has been unable to sustain its bullish momentum lately, adding to the downward pressure. DOGE price fell nearly 5% on August 13th, emphasizing the bear trend, after failing in an attempt to turn the August 12th rally into a sustainable rally.

The token failed to overcome the 20-day EMA resistance around $0.11, indicating weakness in the upside movement. The resistance level around $0.11 remains a critical hurdle, and a break above this level could push DOGE towards the 50-day EMA, which is located around $0.12.

On the other hand, weakness in purchasing power indicates that such a move seems unlikely without a significant market trend change. On the downside, if DOGE fails to maintain current levels, this decline could cause the price to test key support levels near $0.098 and $0.091.

These levels are critical because falling below these levels can lead to further declines, exacerbating the bearish trend. The relative strength index (RSI) is trending around 42.95, indicating a lack of clear momentum in either direction, but the overall setup points to continued bear pressure unless a significant catalyst emerges.

The position of the RSI also indicates that DOGE is not yet oversold, leaving room for further moves to the downside.

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