Should You Short Dogecoin Price Now? Analysts Warn of Key Price Levels

Key Insights:

• Dogecoin dropped 8% in 24 hours, now trading near $0.18 amid high volatility.
• Analysts set short targets at $0.179, $0.163, and $0.144, with a stop-loss at $0.217 based on technical indicators.
• Dogecoin’s futures open interest fell 67% in three months

Dogecoin price dropped 8% in the past 24 hours, trading near $0.18 amid high volatility. Analysts have identified short targets at $0.179, $0.163, and $0.144. The recommended stop-loss is at $0.217. Meanwhile, Dogecoin’s futures open interest has fallen by 67% in three months. This decline signals reduced market participation.

Dogecoin Price Faces Heavy Selling Pressure

Dogecoin price has been in a downward trend, losing nearly 44% over the last 30 days. DOGE price is now under critical support levels. Despite the recent drop, DOGE price remains up 90% over the past year. Long-term holders are still in profit, but short-term traders face risks.

The price of Dogecoin hovers around $0.18, a key psychological level. Analysts believe further declines could occur if selling pressure increases. Traders are closely monitoring technical indicators to predict the next move.

Short Targets for Dogecoin price

TradingView analysts have shared insights into short opportunities. A trader named pullbacksignal has issued a sell signal for DOGE/USDT. He suggests selling DOGE at current prices while setting a stop-loss at $0.217.

His target levels for profit-taking are $0.179, $0.163, and $0.144. These targets align with Fibonacci retracement levels and other technical indicators. Traders using this strategy aim to capitalize on the current market weakness.

Another analyst, Exocet03, has identified a falling wedge pattern. He expects the price to reject upper resistance and drop toward $0.175. If the market reacts positively, a potential breakout could follow. The analyst highlights $0.235 as a key breakout point.

Buying Opportunity or More Downside?

While certain analysts advise that investors should short DOGE price, others argue that the altcoin can still be bought at a good price. A trader named ProCrypto23 is optimistic about DOGE price stating that it has minimal room to fall. The trader has a long position at $0.18590 awaiting a reversal.

His stop loss is at $0.18200 to reduce risks. His profit aims at ranging between $ 0.78 and $ 2.00. If the price of DOGE rises, there is a possibility that it will reach new high levels. However, the current market is not quite favorable.

Dogecoin Futures Open Interest Drops 67%

Dogecoin’s futures market shows declining trader interest. Open interest has dropped 67% in three months. The total value of active futures contracts fell from $4.07 billion in December to $1.33 billion.

Open interest represents the number of active futures positions. A sharp decline indicates that traders are withdrawing from investing in the shares/stocks. This trend is normally associated with poor market sentiments.

Lower open interest implies that few people are anticipating future price direction through futures trading. Moreover, this can reduce the turnover and raise the price fluctuations. If the current trend persists, then DOGE price might experience a bearish run in the short term.

Key Levels to Watch

Dogecoin price action remains unpredictable, with important levels in focus. If Dogecoin price breaks below $0.179, it may decline further. The next major support levels are at $0.163 and $0.144.

A drop below these levels could trigger more selling pressure. Traders looking for a rebound will closely watch these points. A strong bounce from support could offer short-term opportunities.

On the positive side, DOGE price must overcome the $0.217 level to indicate that a recovery is on the way. The break above this level would mark a bullish breakout. For the confirmation purpose, traders should pay close attention to this level of resistance.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.