12/2/2022 | BeInCrypto
Can Dogecoin Price Post Further Gains Before Year-End
DOGE price gains left short-term holders in good profits, but with the rally weakening, the coin’s future seemed shaky.
Dogecoin price DAA divergence suggested some bearish pressure for the coin.
The $0.086 mark supports the DOGE price, as 94,950 addresses hold over 12.72 billion DOGE at that level.
Dogecoin has been one of the most steady gainers in a bear market, charting over 35% gains in the last 10 days. However, with price action weakening and year-end close, what will be the fate of DOGE price?
Dogecoin price action offered traders some respite in a largely barren market. DOGE was one of the few currencies that saw sustained gain for the last 10 days making higher highs despite the bear market.
From a technical point of view, DOGE price gains left short-term holders in good profits, but with the rally weakening, the coin’s future seemed shaky.
Interest in Dogecoin Dwindles
While the recent DOGE price pump was welcome, the question remained whether DOGE would see bullish momentum before year-end. On a one-hour chart, DOGE price had started to drop.
At press time, DOGE traded at $0.0978, losing 5.27% on the daily time frame. DOGE price fall was accompanied by a fall in trade volumes. The daily trade volumes had dropped by 26.47% and stood above the $822.84 million mark.
Looking at the social metrics for DOGE, it was clear that there was no-to-low market euphoria for the coin. Weighted sentiment had dropped to lower negative levels while social volumes maintained low.
A drop in volumes and social metrics suggested no major demand or interest in DOGE at the moment.
Furthermore, price daily active addresses (DAA) divergence suggested some bearish pressure for the coin, which could lead to more losses in the short term.
DOGE spot traders seemed to be done with the recent bull run. With indicators flashing sell-signals, a lot of short-term participants may have taken profit after the recent DOGE price run.
Futures Market Turning Red
Dogecoin open interest dipped by close to 9% and stood at $361.3 million at press time. With the perpetual market open interest falling, the same could mean short-term bearishness is on its way.
The DOGE aggregated open interest had been falling for the last three days. Apart from that, the Dogecoin long-liquidations of over $1.9 million added bearishness to the market.
With over $1.9 million worth of longs liquidated, the DOGE price seemed to be in for a short-term pullback.
For now, the $0.086 mark supports the DOGE price, as 94,950 addresses hold over 12.72 billion DOGE at that level.
While DOGE on-chain metrics look exhausted for a near-term rally, in case of retail euphoria, DOGE price can witness an uptick. Furthermore, if DOGE bulls place prices above the $0.107 mark, a bullish momentum can be expected. At the $0.107 mark, 4290 addresses hold over 8 billion DOGE.
Once that upper resistance is cleared, the DOGE price can see a year-end rally, but for now, DOGE holders could be headed for some losses.
Disclaimer: BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.