Dogecoin falls below key support as spot outflows hit $55M

What happened

Dogecoin traded at $0.086 at press time after a 1.82% decline in 24 hours, and the token fell below a crucial support level. It now sits at a two-week low as crypto market sentiment weakens.

CoinGlass data shows Dogecoin amassed $55 million in spot outflows in the four days leading up to October 8. Long liquidations added to the drop, with $16 million recorded within two days. Sentiment weakened after Bitcoin (BTC) fell below $84,000 following the release of hawkish FOMC minutes.

Fund demand cooled as well. SoSoValue data shows Dogecoin ETFs have not recorded any inflows in October. Open interest dropped from $1.53 billion to $1.38 billion, and the long/short ratio stood at 0.89.

Why it matters

The decline pushed DOGE below the 61.8% Fib support at $0.092 on the one-day chart. The next support is $0.083, and a breach could fuel the downtrend towards $0.078. The RSI reading of 42 puts the outlook in bearish territory, but the RSI has not entered the oversold level below 30, so further downside remains possible.

DOGE has lost more than 11% so far this week. It holds just above the broken trendline at $0.084, and a daily close below it would expose $0.078 and $0.070. The ADX reading of 25 is tipping south, which suggests the downtrend is weak.

What the data shows

Derivatives positioning differs by exchange. Binance shows a long/short reading of 2.41, while OKX has four times more long accounts than short accounts. CoinGlass shows a long-to-short ratio of 1.18, and funding rates sit at 0.0010%.

The aggregate long/short ratio of 0.89 shows traders continuing to open more short accounts, even as the Binance and OKX readings tilt the other way.

Santiment data points to distribution by larger holders. Wallets holding between 1 million and 100 million DOGE shed 100 million tokens since Tuesday, which may point to profit-taking.

What is still unclear

• Bulls face several levels above the current price. They must clear the 100-day EMA at $0.086 and the 50-day EMA at $0.088, while the 200-day EMA at $0.093 and resistance at $0.102 sit higher.
• Analyst LAR (@LAR7Crypto), who posted on October 3 that accumulation in the triangle continues, said the market maker is shaking out weak hands. He placed limit buy orders at $0.0892 and $0.0867, which he calls strong support areas, and targets $0.112.

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