Dogecoin Faces Deeper Correction as Bearish Pressure Mounts

Dogecoin (DOGE) continues its downward trend, trading at approximately $0.090 on Wednesday, marking a more than 5% decline for the week. Bearish sentiment is intensifying, with short positions hitting a one-month high and traders showing signs of caution. Weakening momentum indicators also suggest potential further losses for DOGE.

The key metrics for Dogecoin paint a bearish picture. According to CoinGlass, the long-to-short ratio for Dogecoin stands at 0.68 on Wednesday, the lowest level in over a month. A ratio below one typically indicates bearish sentiment, as traders anticipate a drop in asset prices.

Data from CryptoQuant further supports a bearish outlook. The spot and futures markets for DOGE show signs of overheating, with large whale orders but a dominance of sell-side activity. This highlights a cautious and bearish bias among Dogecoin traders.

Technically, Dogecoin is trading below its 200-day Exponential Moving Average (EMA) at $0.093, a key resistance level. While it holds above the 50-day EMA at $0.088 and the 100-day EMA at $0.086, the Relative Strength Index (RSI) near 48 and a negative Moving Average Convergence Divergence (MACD) line suggest fading momentum. Immediate support is seen around $0.088, with deeper support at $0.086 and $0.070. To ease bearish pressure, DOGE would need to reclaim the 200-day EMA, with the next resistance at $0.102.