Dogecoin (DOGE) continues to fall. It was selling around $0.19 on Tuesday, after falling almost 17% the day before. Because of the current drop in DOGE, over $20 million has been lost in liquidations in the last 24 hours, and over $100 million was lost last week. The long-to-short ratio and technical forecasts point to another drop toward the $0.14 mark.
In the last 24 hours, over $20 million worth of dogecoin has been lost
Dogecoin’s price fell almost 17% on Monday, and it continued to fall on Tuesday, falling almost 4% during the Asian trade session. CoinGlass data shows that this drop has caused a wave of liquidations that have raised more than $20 million in the last 24 hours and more than $100 million last week.
Even with Musk’s backing, strong liquidations like this could cause Fear, Uncertainty, and Doubt (FUD) among DOGE investors. This could make more people want to sell, which would cause the price of Dogecoin to drop even more.
The DOGE long-to-short ratio on Coinglass is also a sign of trouble. It is currently 0.86 and is still going down, hitting its lowest level for the month. If this ratio is less than one, it means that more traders are betting that the price of the object will go down.
Bears in Dogecoin want to reach the $0.14 mark
Dogecoin’s price fell all the way to $0.27 on February 15, which was the 50% price retracement level from its low point of $0.05 on August 14 to its high point of $0.48 on December 2. It then fell another 26% in two weeks. But DOGE went up 20% over the weekend, but it kept going down on Monday. As I write this on Tuesday, the price is still down 3.4%, or about $0.19.
On the daily chart, the Relative Strength Index (RSI) is 33 after rejecting around its neutral level of 50 and getting close to its oversold level of 30. This shows that there is strong bearish movement. The Moving Average Convergence Divergence (MACD) indicator also showed a bearish crossing, which means the price is likely to go down even more.
If DOGE keeps going down and closes below the weekly support level of $0.18, it could keep going down and test its November 3 low of $0.14.
But if DOGE finds support around the weekly level of $0.18 and bounces back, it could keep going up and test its 50% price retracement level at $0.27.
