- Dogecoin drops below $0.17 as bearish momentum overrides recent gains. Â
- RSI and MACD indicators show strong downside pressure on DOGE price. Â
- Persistent exchange outflows signal cautious sentiment among DOGE traders.
Dogecoin ($DOGE) has entered a volatile trading phase as its price drops below $0.17, recovering gains made earlier in the week. The shift comes just days after analysts suggested DOGE could surpass previous cycle highs, with targets ranging as high as $3.
However, a more than 10% increase in the last days broke the descending trendline and returned the meme coin to the bearish signals of the March final session. Technical metrics, including the RSI and MACD, now show strong downside pressure, while on-chain data reveals continued outflows from exchanges.
After trading as high as $0.1717, Dogecoin has fallen to $0.1614 as of the time of writing, recording a 6.05% 24-hour decline. The drop follows a downward movement throughout the day, losing some of its recent weekly gains. While trading volume has raised 2.27% to $1.03 billion, this uptick has not been enough to halt the price decline.
Source: CoinMarketCap
Dogecoin’s market capitalization also dipped to $24 billion, down in step with the price, while its fully diluted valuation sits at $23.99 billion.The token circulation is currently at 148.65 billion DOGE, which is the same as the total supply because it has no cap on the number of tokens that can be produced. The current volume to market capitalization is at 4.28 percent, which means that the liquidity is moderate, although current price suggests that the sentiment is currently bearish in the market.
Technical Indicators Point to Further Weakness
The short-term chart analysis shows continued bearish pressure. According to the technical indicators, the Relative Strength Index (RSI) within 4-hour time frame has fallen to 24.54, meaning that the asset is now oversold.
Source: TradingView
MACD provides further affirmation of the bearish outlook. MACD and signal lines are further into negative territory, while the histogram indicates that bars are red. These signals indicate that selling pressure continues to prevail, with Dogecoin possibly stumbling to reverse the recent decline and reclaim the support levels of $0.18.
Exchange Outflows Reflect Lingering Market Caution
On-chain data from Coinglass shows consistent net outflows from Dogecoin spot markets. The red bars on the netflow chart have endured from November through March, suggesting sustained capital movement away from exchanges. During November, DOGE recorded an inflow spike above $200 million, but this was followed by continuous outflows, with several sessions exceeding $100 million.
These outflows coincide with the drop of DOGE’s price from $0.50 in the late quarter of 2023. It continues that the volume of new funds has not returned significantly in recent market sessions, indicating that trading has remained cautious lately.
Source: Coinglass
However, looking at past performance, Dogecoin may not be able to recover and move up the chart unless sentiments turn around or perhaps a flow of capital influx occurs. Currently, traders are still waiting for clearer signals before engaging in trading in larger positions.
FAQs:
Why has Dogecoin ($DOGE) dropped below $0.17 despite recent gains?
Dogecoin fell to $0.1614 due to renewed bearish pressure, as technical indicators like RSI and MACD turned negative. This decline followed a short-lived 10% rally earlier in the week.
What do the technical indicators say about Dogecoin’s short-term outlook?
The RSI is in oversold territory at 24.54, and the MACD shows deepening negative momentum. Both indicators suggest continued selling pressure and a weak recovery outlook.
What do exchange netflows indicate about Dogecoin’s market sentiment?
Persistent outflows from exchanges, as shown by Coinglass, reflect ongoing investor caution. These outflows have continued since November, aligning with DOGE’s broader price decline.
