Dogecoin (DOGE), will it hold $0.07? A turning point for survival has arrived

Dogecoin, will it hold $0.07 for survival? Warning of further decline amid bear market

▲ Dogecoin (DOGE) ©

Dogecoin (DOGE) is testing the key support level of $0.07 amid a downtrend that has lasted over six weeks. Although it has entered the oversold zone, technical indicators and the derivatives market still point to bearish dominance, suggesting the possibility of further decline.

According to investment media FXStreet on June 29 (local time), Dogecoin has fallen to around $0.07 as market-wide risk aversion sentiment continues. With Bitcoin struggling to find direction below $60,000, CoinMarketCap's Fear & Greed Index also remains at 15, indicating 'Extreme Fear,' which is weighing on Dogecoin investor sentiment.

Cautious movements by investors have also been observed in the derivatives market. According to Coinglass data, Dogecoin's open interest decreased from $1.76 billion on May 15 to $957.74 million on the 29th. This indicates that investors are reducing their risk exposure and liquidating positions. On the other hand, the funding rate remained positive, close to 0, at around 0.0029%, suggesting some short-term bullish expectations, but overall market sentiment was mixed.

The technical trend remains predominantly bearish. Dogecoin is trading below both its 50-day and 200-day Exponential Moving Averages (EMAs) of $0.0885 and $0.1111, respectively, with the downtrend line at $0.0826 also acting as a major resistance. The Moving Average Convergence Divergence (MACD) is moving in the negative zone below its signal line, maintaining a bearish trend, and while the Relative Strength Index (RSI) has entered the oversold zone at 23, there are no clear signs of a trend reversal yet.

FXStreet analyzed that $0.07 is the most crucial support level in the short term. If this level is broken, further decline to the next support level of $0.0642 could be possible. Conversely, if it succeeds in rebounding, $0.0777 would be the first resistance, and a breakthrough above $0.0826 would be necessary for a meaningful recovery trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*