Dogecoin Plunges to $0.0700: Will Selling Pressure Take Over?

• Dogecoin [DOGE] has traded at a critical support level of $0.0700 over a 10-day period, with selling pressure preventing any bullish rallies.
• Technical indicators on the four-hour chart pointed toward sellers and open interest rates were in a continual decline.
• If Bitcoin drops toward the $25k level, DOGE could experience more aggressive selling and test the next support level at $0.0632.

Dogecoin Plunges to Critical Support Level

Dogecoin [DOGE] has traded at a critical support level of $0.0700 over a 10-day period, with selling wave giving bulls no chance for a rally. The bearish order block and resistance at $0.0934 ushered in a new wave of selling pressure that pushed DOGE to its lowest price level since March. With price trading at the $0.0700 support level over a 10-day period, bulls have temporarily halted the bearish momentum but have been unable to push on from the support level for more gains, which suggests that bears could force another downward move again if Bitcoin drops toward the $25k level.

Technical Indicators Point Toward Sellers

The Chaikin Money Flow (CMF) dipped under the zero mark and stood at -0.10 as of press time, hinting at continued outflows for DOGE while On Balance Volume (OBV) also remained flat, suggesting limited demand for DOGE. An uptick in volume could spur a bullish rally from the $0.0700 support level while another re-test of this support could see DOGE experience more aggressive selling by bears targeting the next support level at $0.0632.

Open Interest Rates Remain in Decline

Data from Coinalyze showed that Open Interest (OI) rates on 17 May stood at $332M but dropped to$317M as of press time, indicating ongoing decline in open interest rates and further strengthening sell side pressure on Dogecoin’s price action ahead of any possible bounce off current levels of around $0.0750 region towards higher levels near previous highs seen near mid April 2021 near resistance levels around 0$.1015 region .

Realistic or Not – Here’s Doge Market Cap In BTC Terms

Realistic or not, coinalyze data indicated that Doge market cap was around 1% when denominated in terms BTC as against total crypto market cap domination by Bitcoin which stands above 45% currently as compared to early January 2021 where doge coin had almost 8% market share when denominated against total crypto market cap . This indicates how much doge had lost its value due to recent selloff .

Conclusion

Dogecoin [DOGE] experienced significant bullish rally early April however it has been on bearish decline afterward shed over 30%. If Bitcoin continues trade sideways between 26k-27K , selling pressure would take over & may cause doge price drop below 0$.0700 & test 0$.0632 supports . Technical indicators point toward sellers & OI continue declines , thus caution is advised before entering long positions .