Dogecoin Faces Renewed Selling Pressure Amid Cautious Market Activity  

Dogecoin (DOGE) experienced renewed selling pressure, dropping 2% to $0.1628. While derivatives market activity decreased, options open interest surged by 130%, suggesting potential volatility. Technical indicators, however, show limited bullish momentum, with the RSI at 46.88 and a weak MACD signal.

Following a brief recovery, Dogecoin is again facing downward pressure. On-chain and derivatives data reveal cautious market sentiment. The past 24 hours saw a price decline of over 2%, leaving DOGE struggling to maintain its recent gains. It currently trades at $0.1628. Source: CoinMarketCap

On April 13th, DOGE briefly reached a daily high of $0.1672, but this upward movement was short-lived, with the price reversing throughout the day to an intraday low near $0.1620, indicating persistent bearish pressure. Over the past month, DOGE has seen significant price fluctuations, including a peak in late March followed by substantial selling. Despite this volatility, exchange supply remained stable, suggesting a lack of panic selling among long-term holders.

Trading volume decreased by 6.72% in the last 24 hours, reaching $788.68 million. Dogecoin maintains a market capitalization of $24.24 billion, holding the eighth position in the cryptocurrency market.

Reduced Speculative Interest in Derivatives Markets

Derivative market analysis reveals decreased speculative interest in DOGE. 24-hour derivatives trading volume fell by 9.25% to $2.27 billion, and open interest dropped by 3.66% to $1.53 billion, indicating reduced trading activity. Source: Coinglass

Conversely, DOGE options open interest increased significantly by 130.27% to $70.82K, hinting at anticipated volatility. The overall long/short ratio stands at 0.9139, suggesting a slight dominance of short positions. However, exchanges like Binance and OKX show a higher long/short ratio (2.1437 and 2.32 respectively), indicating stronger long positions despite the recent price drop.

Liquidation data from Rekt shows $3.57 million in 24-hour DOGE liquidations, with longs accounting for $2.70 million and shorts for $869.5K. This signifies substantial losses for long positions during the recent correction.

Technical Analysis Suggests Consolidation

Technical analysis suggests a period of consolidation for DOGE. The RSI is at 46.88, slightly below the neutral 50 level but trending upwards from 41.69, indicating a minor recovery in buying pressure. Source: TradingView

The MACD shows a bullish crossover, with the MACD line crossing above the signal line (-0.00711 to 0.00154). However, this bullish signal remains relatively weak.