Dogecoin (DOGE) continues to struggle near its recent lows, lacking momentum for a recovery. DOGE trades at $0.07188 with a decline of 0.58% in the last 24 hours. The token remains below all the key moving averages, indicating its subdued momentum.

DOGE extends its decline near its yearly low of $0.069 as bearish sentiment continues to weigh on the meme coin. 

Derivatives Data Shows Bearish Positioning

According to CoinGlass data, DOGE’s long-to-short ratio reads 0.7211, nearing its lowest level in over a month. A ratio below 1.0 indicates that short positions outnumber long positions, reflecting growing expectations that the price will continue to decline.

In addition, funding rates also turned negative at -0.003% on Friday, indicating that short sellers are paying long traders to keep positions open. Since then, it has recovered to its current level of 0.067%.

Meanwhile, spot Dogecoin ETFs have seen limited activity over the past two weeks, with inflows offering no meaningful support for the token during its recent decline.

MVRV Drops Below 0.8

DOGE's Market Value to Realized Value (MVRV) ratio dropped below 0.8, which suggests the token is in a valuation zone that has historically appeared during periods of low market activity and investor confidence. A reading below 1 suggests the average holder is sitting on unrealized losses.

Similar MVRV readings below 0.8 previously marked accumulation periods before major rallies in 2017 and 2021, though these zones occasionally continued for extended periods without an immediate recovery.

Also Read: Can Dogecoin Hold $0.07 or Will Bears Extend the Selloff Toward $0.065?

Technical Structure

The nearest resistance levels are the 20-day EMA at $0.0765, followed by the 50-day EMA at $0.0819 and the 100-day EMA at $0.0893. The 200-day EMA is at $0.1057, a significant resistance level to overcome for any potential recovery.

Since late June, DOGE has traded sideways in the $0.071-$0.078 range, suggesting buyers have yet to take control.

The Relative Strength Index (RSI) stands at 36.36, having recovered from oversold conditions in early July, when it was at 22, yet it remains well below the 50 midline. The volume, meanwhile, rose 26.74% to $365 million over the past 24 hours.

DOGE needs to reclaim the $0.0765 level before attempting a move above $0.082, which would signal improving momentum. Until these resistance levels are reclaimed decisively with volume, the outlook remains bearish in the near term.

On the downside, $0.071 is a crucial support zone; a move below this would weaken the structure and could expose a further decline toward the $0.065 area.

FAQs:

1. Why is Dogecoin price under pressure?

Dogecoin is under pressure as it remains near yearly lows and trades below key moving averages. Weak derivatives data, limited ETF activity, and low market confidence continue to weigh on DOGE.

2. What does DOGE’s long-to-short ratio indicate?

DOGE’s long-to-short ratio at 0.7211 shows that short positions outnumber long positions. This suggests traders are expecting further downside rather than a quick recovery.

3. Why is the MVRV ratio below 0.8 important for Dogecoin?

An MVRV ratio below 0.8 means Dogecoin is in a historically stressed valuation zone. Such levels appeared before past accumulation phases, but recovery may still take time.

4. What resistance levels should DOGE reclaim?

DOGE first needs to reclaim the 20-day EMA near $0.0765. A move above $0.0819-$0.082 would signal improving momentum, while the 100-day EMA near $0.0893 remains a stronger hurdle.

5. What happens if Dogecoin falls below $0.071?

A break below $0.071 would weaken DOGE’s short-term structure. It could expose the token to further downside toward the $0.065 support area.