Dogecoin faces bearish pressure as derivatives data shows declining open interest and rising long liquidations. The price remains below all key exponential moving averages, signaling weak buyer strength. Analysts note the coin is approaching a critical juncture, however, as a breakout from its long-standing descending channel could still trigger a recovery toward higher resistance levels.
Dogecoin is confronting increasing bearish pressure as derivatives data reveals falling open interest and rising long liquidations. According to the crypto analyst Umair Crypto, traders remain cautious, emphasizing that *”early weakness alone is not confirmation.”*
The key focus for many is the DOGE/BTC pair, where a clean breakdown below the $0.00000130 level is seen as a needed confirmation for a trend continuation. Market participants are treating current conditions as a warning phase rather than a confirmed bearish trend, recalling previous false breakdowns.
Technical indicators reflect the bearish sentiment, with the price residing below all major exponential moving averages. The RSI stands at 40.52, confirming a lack of enthusiastic buyers but not yet indicating oversold conditions.
Another analyst, Jonathan Carter, pointed out that DOGE is nearing the upper limit of a long-standing downtrend channel on the daily chart. He noted a gradual reduction in selling pressure and signs of accumulation at lower levels.
Carter suggested that a breakout supported by high volume could initiate a bullish recovery phase. Key upside levels to watch in such a scenario include $0.100, $0.116, $0.135, $0.153, $0.182, and $0.206, according to his analysis.
