Dogecoin's immediate future appears challenging as significant selling pressure threatens to undermine recent demand zone defenses. Despite fleeting moments of resilience, market indicators point towards a continuation of its bearish trend.
The Looming Price Correction
Dogecoin (DOGE) is currently battling strong bearish sentiment, with recent market activity suggesting a potential 18% price slide. A key indicator, the On-Balance Volume (OBV), has plummeted below its August lows, signaling that overwhelming selling volume has inundated the spot market throughout October. While bulls briefly managed to defend the critical $0.175 demand zone following Bitcoin's recent dip, the overall short-term outlook remains distinctly negative, further highlighted by a notable drop in Open Interest. This intense selling pressure suggests that a breach of the $0.175 mark could be imminent, paving the way for a decline towards the next significant support level at $0.15.
Conflicting On-Chain Dynamics
While the immediate price action appears bleak, on-chain metrics offer a mixed, albeit largely insufficient, picture. Daily active addresses have been in decline throughout October, indicating reduced network activity and a slump in organic demand for Dogecoin. Conversely, an uptick in the mean coin age over the past two weeks could hint at some underlying on-chain accumulation, suggesting long-term holders are less active. However, despite these minor signs of potential strength, they are unlikely to counteract the prevailing selling spree. Ultimately, the market largely anticipates that the current bearish momentum will persist, making a drop to the $0.15 level a strong possibility in the short term.
