Dogecoin Price Forecast: DOGE Could Retest $0.14
Dogecoin (DOGE) could retest the $0.14 support level amid continued bearish performance, despite some positive data from the derivatives market. The coin, which is the native currency of the Dogecoin ecosystem, has shown poor performance this week, losing less than 1% of its value in the last 24 hours. Currently trading at $0.157, DOGE may experience further declines in the short term.
Since the flash crash on October 10, which wiped out over $19 billion in crypto assets in a single day, Dogecoin has lost 37% of its value. This selloff mirrors the broader negative sentiment in the cryptocurrency market, fueled by uncertainty surrounding potential future rate cuts by the U.S. Federal Reserve. Fed Chair Jerome Powell’s remarks during the last Federal Open Market Committee (FOMC) meeting indicated that a December rate cut was not guaranteed, which unsettled investors and contributed to a risk-off mood across the market.
"Dogecoin has lost 37% of its value since the October 10 flash crash."
Despite DOGE’s recent losses, the derivatives market for Dogecoin has shown some promising signs. The Open Interest (OI) in Dogecoin futures has stabilized over the past few days, with data from Coinglass indicating that traders are regaining confidence in DOGE’s ability to recover in the short term. Coinglass also reported that the Dogecoin OI-Weighted Funding Rate has increased to 0.0076% on Wednesday, up from -0.0083% on Tuesday, as more traders enter long positions.
The DOGE/USD 4-hour chart remains bearish, reflecting a 10% loss in value over the last 24 hours. Despite the market conditions, there are indications that Dogecoin may still find support around $0.14 in the coming weeks.
Author’s Summary: Dogecoin faces short-term losses, with a potential retest of the $0.14 support, although the derivatives market shows some signs of recovery.