Traders move $380 million as DOGE mirrors Bitcoin’s pullback

The chart above shows how Dogecoin mirrored Bitcoin’s 5% decline in the last 24 hours.

Dogecoin traders withdrew $380 million after failing to breakout from $0.50

After hitting a 3-year high of $0.48 on November 23, Dogecoin price was unable to continue rising.

And after a week of stagnation, short-term traders are in the process of reducing their DOGE positions.
To lend credence to this narrative, Coinglass’ open interest chart below tracks the value of active Dogecoin futures contracts to provide insight into how traders are reacting to key market events.

Dogecoin Price vs. DOGE Open Interest | Source: Coingecko

The chart above shows that open interest in DOGE fell from $3.88 billion to $3.50 billion in the last 24 hours.

This recorded outflow of $380 million represents a 10% decline in total capital, while the Dogecoin price has fallen by more than 16% over the same period.

When the price of an asset falls faster than open interest, it often indicates that traders are closing long positions quickly.

As bulls lose confidence in DOGE’s short-term recovery potential, the $0.40 support could be at risk in the coming days.

DOGE price prediction: $0.40 support at risk

Dogecoin continues to send bearish signals as bulls struggle to hold the $0.40 support level.
The Donchian Channel (DC) DOGE is currently trading below the midline ($0.41), signaling growing bearish momentum. A multi-day close below $0.41 could trigger further downturns towards the next key support level at $0.34.

Dogecoin price prediction | DOGEUSDT

The volume delta data shows a negative net value of -89.44 million, indicating stronger selling pressure compared to buying activity.

This imbalance increases the possibility of a continuation of the downtrend. A break below $0.40 could trigger further liquidations and accelerate losses towards the $0.34 support zone.

On the other hand, if DOGE manages to hold $0.40 and climb above $0.45, bulls could attempt to force a retest of the psychological resistance at $0.50.