The crypto market is currently undergoing a choppy price action as neither the bulls nor the bears seem to be in control at the moment.
Bitcoin, the leading cryptocurrency by market cap, is trading at $90,368, down by less than 1% in the last 24 hours.
Dogecoin’s DOGE is the second-worst performer among the top 10 cryptocurrencies by market cap, after losing 2.5% of its value.
At press time, DOGE is now trading at $0.1361 and could record further losses in the near term.
DOGE stays below $0.14 amid falling retail demand
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DOGE has lost 7% of its value in the last seven days, making it the worst performer among the top 10 cryptocurrencies.
Its bearish performance comes amid falling retail demand and minor ETF inflows.
According to CoinGlass, Dogecoin’s futures Open Interest (OI) currently stands at $1.73 billion, down from the $1.96 billion recorded a week ago.
The declining OI indicates that retail demand for the cryptocurrency is falling, with more traders choosing to stay out than bet on Dogecoin’s price.
If the downward trend persists, signaling low retail demand, price recovery could be a pipe dream.
The declining OI could see DOGE’s price retest the December low of $0.1161 over the next few days or weeks.
The bearish performance was also supported by poor ETF inflow.
On Friday, Dogecoin spot ETFs recorded a minor inflow of nearly $404,000 despite the heightened volatility in the market.
According to SoSoValue, US spot Dogecoin ETFs posted the largest inflow since launch, $2.3 million on January 2, followed by the second-largest, $1.6 million on January 5th.
The declining ETF inflow suggests that institutions are slowing down interest in the leading memecoin.
DOGE faces ongoing downside pressure
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The DOGE/USD 4-hour chart is bearish and efficient as Dogecoin has failed to overcome the $0.145 resistance level over the past few days.
At press time, DOGE is trading at $0.1361, after falling to overcome the 50-day Exponential Moving Average (EMA) at $0.1436.
The technical indicators suggest that the coin is bearish and could suffer further losses in the near term.
The Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart is below the neutral zone, suggesting a bearish trend.
The Relative Strength Index stands at 40 below the neutral zone, adding further confluence to the bearish narrative.
If the selloff continues, DOGE could drop below the $0.1276 support level, turning it into a near-term resistance.
#DOGE Descending Channel Breakout Imminent👨💻
Dogecoin is poised to break out from the descending channel formation on the daily chart💁♂️
Price action above the MA 50 indicates a potential reversal from a prolonged downtrend structure🔍
Upside targets:
🎯 $0.153
🎯 $0.182
🎯
An extended bearish trend could see DOGE retest the $0.116 level once again.
However, if buyers defend this level, DOGE could embark on a recovery and hit the $0.15 psychological level over the next few days.
