TRENDING:
Canadian Unemployment
UoM Consumer Sentiment
Oil price
XAU/USD
EUR/USD
GBP/USD
Silver
Sponsored by
|

Dogecoin Price Forecast: Extended correction and weakening momentum raise downside risks

  • Dogecoin extends its correction, falling more than 5% and trading around $0.090 mid-week.
  • Rising short positions and signs of overheated conditions among traders increase the risk of further downside in DOGE.
  • The technical outlook shows weakening momentum, hinting at a deeper correction.
Dogecoin Price Forecast: Extended correction and weakening momentum raise downside risks
Manish ChhetriManish ChhetriFXStreet

Dogecoin (DOGE) extends its losses, trading around $0.090 on Wednesday, down more than 5% so far this week. Bearish pressure is strengthening, with short positions reaching a one-month high and traders in overheated conditions. Meanwhile, weakening momentum indicators are also hinting at further losses in DOGE.

Dogecoin key metrics show bearish signs

Derivatives data shows cautious signals among traders. CoinGlass’ long-to-short ratio for Dogecoin reads 0.68 on Wednesday, the lowest level over a month. A ratio being below one indicates bearish sentiment, as traders bet that asset prices will fall.

Dogecoin long-to-short ratio chart. Source: Coinglass

CryptoQuant’s summary data also shows a bearish outlook for the dog-themed meme coin. DOGE’s spot and futures markets show overheating conditions, while the futures market shows large whale orders but with sell-side dominance. These highlight a bearish, cautious sentiment bias among Dogecoin traders.

DOGE summary chart. Source: CryptoQuant

Dogecoin technical outlook: DOGE slips below key 200-day EMA

Dogecoin price trades at $0.090 on Wednesday, down over 5% so far this week. Despite the correction, DOGE remains mildly bearish in the near term, capped below the 200-day Exponential Moving Average (EMA) at $0.093. Price holds above the 50-day EMA at $0.088 and the 100-day EMA at $0.086, suggesting underlying demand still supports the broader uptrend structure, but the Relative Strength Index (RSI) near 48 and a slightly negative Moving Average Convergence Divergence (MACD) line hint at fading momentum while the pair consolidates under the recent highs.

On the downside, immediate support clusters around $0.088, where the 50-day EMA coincides with a horizontal level, followed by the 100-day EMA at $0.086 and the former trendline break area near $0.085; a daily close below this zone would open the way to the deeper horizontal floor at $0.070.

On the topside, DOGE would need to reclaim the 200-day EMA at $0.093 to ease bearish pressure, with the next notable resistance coming at the horizontal barrier around $0.102, where sellers are likely to re-emerge.

DOGE/USDT daily chart

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Related news

Author

Manish Chhetri

Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.

More from Manish Chhetri
Share:

Editor's Picks

Starknet Price Forecast: STRK rally tests key breakout amid proposed Layer-1 transition

Starknet Price Forecast: STRK rally tests key breakout amid proposed Layer-1 transition

Starknet is up 16% so far on Friday, advancing its steady recovery of nearly 200% since mid-August. The rally aligns with the rising demand for financial anonymity in the cryptocurrency market and the CEO of StarkWare, Eli Ben-Sasson’s proposed transition of Starknet to Layer-1 to achieve quantum security by 2027.

Top 3 Price Prediction: BTC sheds 5%, ETH loses 50-day EMA, XRP risk breakdown

Top 3 Price Prediction: BTC sheds 5%, ETH loses 50-day EMA, XRP risk breakdown

Bitcoin, Ethereum, and Ripple remain under pressure on Friday after losing over 5%, 9% and 8% so far this week. BTC trades below $82,000, ETH loses $2,500, while XRP retreats toward a key support zone. The price action of these top three cryptocurrencies now faces critical technical levels that could determine whether the correction deepens or a recovery takes shape.

Ethereum Price Forecast: ETH drops below $2,500 as rising Treasury yields trigger selling pressure​

Ethereum Price Forecast: ETH drops below $2,500 as rising Treasury yields trigger selling pressure​

Ethereum fell below $2,500 on Thursday, down nearly 4% and extending losses for a third consecutive day. The decline follows rising Oil prices and US Treasury yields over the past few days. The 10Y Note Yield reached a 24-year high at 5.35%, and the 30Y Note Yield climbed above 5.70% earlier in the day, sparking major distributions in the crypto market.

Hyperliquid Price Forecast: HYPE drops to $84 as Hyperliquid Labs begins $330 million OTC distribution

Hyperliquid Price Forecast: HYPE drops to $84 as Hyperliquid Labs begins $330 million OTC distribution

Hyperliquid Labs distributed 3.75 million HYPE tokens, worth about $330 million, through an over-the-counter (OTC) arrangement with an undisclosed institution, rather than selling the tokens on public exchanges. According to onchain data shared by OnchainLens on Wednesday, the tokens completed a seven-day unstaking period before the full allocation was credited to Hyperliquid Labs’ spot balance.
Bitcoin: Is BTC setting up for an Uptober rally?

Bitcoin: Is BTC setting up for an Uptober rally?

Bitcoin (BTC) extends its gains, trading near $86,000 at the time of writing on Friday after closing September 6.33% up, reversing its seasonal weakness. Historical data suggest October could be a strong month for BTC, especially after a positive September.