is the price of Dogecoin (DOGE) bearish?

Crypto news regarding Dogecoin (DOGE), the famous memecoin made famous also thanks to Elon Musk’s support, how is its price performing? Also, let’s take a look at future forecasts.

It is worth recalling that Dogecoin is the crypto whose logo is based graphically on the Internet meme representing a Shiba dog.

Focus on the price of the crypto Dogecoin

The higher price charts of Dogecoin (DOGE) have shown strong bearish pressure on one of the most popular meme coins. Indeed, we are seeing that the $0.08 region has posed strong resistance since the beginning of March, and this factor does not seem likely to change anytime soon.

In addition, Bitcoin (BTC) may experience some volatility after falling to $26.5k on 27 March. In this scenario, a rebound for DOGE would offer short sellers a better risk-return region to sell Dogecoin.

Hence, two scenarios arise for bears to pay attention to in the short term. One is a drop below the $0.071 region, highlighted in cyan.

This would be a strongly bearish scenario and bears can look to short the retest of this region as resistance. They can choose the support areas at $0.068 and $0.065 as targets for profits.

An extremely wide stop-loss can be used above Monday’s recent swing high.

The blue line at $0.0713 marked a strong lower time zone of support for DOGE. The second scenario that could play out was a bounce from this region reaching the $0.075-$0.078 area.

Even a move into this area could be shortened, with a stop loss above the $0.0805 threshold. This could provide a better R:R trade and sellers can take partial profits in the support zones if they wish.

The RSI on the two-hour chart has not emerged above 50 neutral since 24 March, which indicated a short-term downtrend. The CMF was also at -0.10 to indicate significant capital flow out of the Dogecoin market.

Open interest declines after Monday’s volatility

Dogecoin reached an oscillating high of $0.0764 on Monday and fell to test the $0.0713 support level only a couple of hours later. This represented a drop of 6.7% and futures traders were either sidelined or lost money.

Open Interest dropped from $261 million to $243 million after this move, and Coinalyze data showed that $1.6 million of long positions were liquidated in those two hours.

However, the expected funding rate was positive, suggesting a slight uptick. Overall, the inference was a bearish sentiment toward DOGE.

Will the price of the Dogecoin crypto yield more in 2023?

As we know, DOGE has had a volatile history, with the price rising in early 2021 before experiencing a significant drop in value. However, some experts believe that DOGE has the potential for significant gains in 2023, with some predicting a 50-fold return.

This possibility is due to several factors. First, to the growing popularity Dogecoin has gained among investors, with its dedicated community of supporters.

Second, due to the fact that it has the potential to be used in real-world applications. In fact, DOGE has been accepted as a form of payment by some merchants.

Finally, DOGE could benefit from institutional investment, which could help drive up their prices and provide significant returns for investors.