NOIDA (CoinChapter.com)—Dogecoin’s price continues to face bearish market sentiment, which has resulted in the token failing to continue its uptrend.
Moreover, bearish cues from the futures market could cause the DOGE USD pair to drop lower on the price scale.
DOGE Futures Market Signals Strong Bearish Sentiment
Recent market data for Dogecoin (DOGE) paints a distinctly bearish picture, driven by sharp declines in both futures open interest and shifts in the OI-weighted funding rate.
Over the past few months, DOGE’s futures open interest has seen a significant decrease, especially following its peak in mid-April. This drop suggests that speculative interest is fading, with traders unwinding long positions as confidence in a price recovery wanes.
The consistent correlation between declining open interest and falling prices underscores the market’s bearish sentiment.
Moreover, the OI-weighted funding rate has turned increasingly negative since early August, indicating a growing dominance of short positions. Traders are evidently betting on further declines, with the absence of sustained positive funding rates reflecting the weakness of bullish sentiment.
The data suggests that unless these metrics substantially shift, DOGE USD is likely to face continued downward pressure in the near term.
The combination of these indicators—a persistent drop in open interest and negative funding rates—implies that DOGE’s bearish momentum is strong and likely to persist without a significant reversal in market sentiment.
DOGE Price Fails To Conquer EMA Resistance
Dogecoin’s recent price action underscores the mounting bearish pressure facing the memecoin. After a failed attempt to convert the August 12 spike into a sustainable rally, DOGE price suffered a nearly 5% decline on August 13, reinforcing the bearish sentiment.
The token’s inability to clear the 20-day EMA resistance near $0.11 highlights the weakness in upward momentum. The resistance level near $0.11 remains a critical barrier, as breaking above it could push DOGE towards the 50-day EMA, which sits around $0.12.
However, the lack of buying strength indicates that such a move is unlikely without a significant shift in market sentiment.
On the downside, if DOGE fails to maintain its current levels, a drop could see the price testing key support levels near $0.098 and $0.091. These levels are critical, as a breach below them could lead to further declines, exacerbating the bearish trend.
The relative strength index (RSI) remains neutral at 42.95, suggesting no clear momentum in either direction, but the overall setup points towards continued bearish pressure unless a significant catalyst emerges.
The RSI’s position also indicates that DOGE is not yet oversold, leaving room for further downward movement.
