Dogecoin (DOGE) Price Analysis: Death Cross Pattern Emerges, But Exchange Netflows Hint at Accumulation

Dogecoin [DOGE] saw a spike in social sentiment recently, and its social media engagement has been on the rise too. This could help the price action turn bullish

output: Dogecoin [DOGE] faced selling pressure after a brief uptick in August. Despite hitting lows of $0.09, technical analysis pointed towards further losses.

Dogecoin’s price action faced a roadblock at the $0.09136 support level over the past two weeks. A technical analysis of this period highlighted the memecoin’s continued vulnerability to bearish pressure.

After retesting its July lows, DOGE sellers remained in control. Also, technical analysis pointed towards further losses.

Fibonacci extension levels could mark the next target for DOGE, if $0.09 gives way on the technicals. Also, the daily and weekly structure seemed to be aligning.

Relative Strength Index (RSI)焼鳥 After briefly raising its head above the neutral 50, the RSI was driven into bearish territory once again over the past two weeks.

Meanwhile, the Directional Movement Index (DMI) показал, что -DI (красный) и ADX были выше 20, что указывает на сильный нисходящий тренд.

Furthermore, the trading volume was low during the attempted price bounce, highlighting a lack of conviction in August. However, the weekly and the daily structure were starting to align. And, the Fibonacci extension level at $0.07162 could be the next target for DOGE if $0.09136 gives way on the technicals.

Clues from exchange netflows and spot markets

While some market participants moved their tokens out of exchange wallets, others remained eager to sell. Also, the spot CVD seemed to be in a continual downtrend over the past two weeks as prices steadily slumped.

The exchange netflow highlighted a different story over varied timeframes. While large portions of DOGE flowed into exchanges over the past three months, a closer look revealed a different picture.

Over the past month, exchange netflows showed that outflows were dominant. A deeper dive revealed that out of the 35.15 million DOGE that flowed out of exchanges, only 3.211 million were left behind as accumulation.

This meant that despite the outflows, the net accumulation was valued at a meager $3.211 million for a $13.7 billion market cap asset. However, in a time of immense selling pressure, any accumulation could bolster the bullish argument.

Is your portfolio green? Check the Dogecoin Profit Calculator Open Interest remained flat, hinting at bearish sentiment in the derivatives market

A glance at the derivatives market revealed that the Open Interest flatlined between the $340 million to $360 million range. Notably, the most recent price drop on Friday, 6 August saw the Open Interest rise – A sign of short-selling and bearish sentiment.

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