The situation for Dogecoin (DOGE) remains challenging. After a slight recovery, the price has barely changed, raising concerns among traders.
Weak Demand Signals for Dogecoin
One of the most troubling signs right now is the Money Flow Index (MFI), which measures buying and selling pressure. For DOGE, the MFI has fallen below 40, indicating fewer coins are being bought while selling pressure builds. This could lead to further price declines.
Whale Selling Adds Pressure
On-chain data shows that whales have sold around 200 million DOGE in just two days. Whale selling usually has a greater impact on the market than retail buying. Currently, small traders continue to purchase DOGE, but this is not enough to offset the whale selling.
Falling Futures Interest Keeps Dogecoin Bulls at Bay
Open interest in DOGE futures has dropped by more than 35% in less than two months. This decline indicates weak speculative interest, which reduces the potential for strong price movements. If the support level at $0.20 is broken, it could lead to a swift correction down to $0.178 and $0.15.
Under the current conditions of whale selling, weak demand, and falling futures interest, there is a risk for Dogecoin. Without changes, a 15% price dip is plausible.
