Dogecoin Sell Signal Issued! Price Could Crash to $0.144 – Should You Exit?

Dogecoin has faced sharp price fluctuations, leaving traders uncertain about the next move. Over the past 24 hours, DOGE has dropped 11%, pushing its monthly losses to 44%. Despite this decline, it remains 90% higher than last year’s price. Investors are debating whether this is a temporary dip or the beginning of a prolonged downturn.

Analysts Warn of Further Decline

Top analysts on TradingView have issued a strong sell signal. Pullbacksignal, a well-respected analyst, has identified bearish indicators on the DOGE/USDT one-hour chart. According to the analysis, traders should sell at the current price and set a stop-loss at $0.217. The expected price targets are $0.179, $0.163, and $0.144.

Technical indicators, including Fibonacci retracement levels, RSI, moving averages, and Bollinger Bands, confirm the potential for further losses. If DOGE fails to hold its support levels, it could continue its downward trajectory in the short term. Traders who anticipate further declines may find opportunities in short positions.

Bulls Spot a Potential Rebound

Despite the bearish outlook, some analysts believe a bullish breakout remains possible. Exocet03, another experienced analyst, has identified a falling wedge pattern. This setup suggests that DOGE could form a temporary low around $0.175 before rebounding. If it holds this level, the price could break out toward $0.235.

A breakout at $0.235 would signal strong buying momentum. Traders looking for long positions may find an entry point around $0.175. If the market supports a bullish shift, DOGE could recover lost ground and climb toward higher resistance levels.

One Analyst Sees a Buying Opportunity

ProCrypto23 disagrees with the bearish perspective and sees the current price as a buying opportunity. The analyst has entered a long position at $0.18590 with a stop-loss at $0.18200. Their price targets range between $0.78 and $2.00, reflecting confidence in DOGE’s long-term potential.

Dogecoin has previously experienced explosive price surges, making this projection plausible if market sentiment shifts. Traders considering long-term investments might find this an attractive entry point. However, risks remain as open interest in Dogecoin futures has significantly declined.

Open Interest Declines by 67%

One concerning factor is the sharp drop in open interest within the Dogecoin futures market. Since December 8, open interest has plummeted from $4.07 billion to $1.33 billion. This 67% decline suggests waning trader confidence and lower market participation.

A decrease in open interest often signals weaker momentum. Without new capital inflows, DOGE could struggle to maintain its price. If trading activity remains low, the price may continue to slide. However, a sudden influx of buyers could reignite bullish momentum, offering traders renewed hope.

What Should Traders Do Now?

Dogecoin’s price remains at a crucial crossroads. Analysts remain divided, making it essential for traders to assess their strategies carefully. Bears are eyeing a drop to $0.144, while bulls expect a rebound from $0.175. If DOGE fails to hold this support level, the price could face further declines. However, a breakout above $0.235 would signal renewed buying pressure.

For short-term traders, staying alert to key support and resistance levels will be crucial. Long-term investors may find current prices attractive but should remain cautious due to declining open interest. If market conditions shift, Dogecoin could experience another surge, offering lucrative opportunities for patient traders.

Final Thoughts: Is This a Buying or Selling Moment?

Dogecoin’s fate remains uncertain as analysts present conflicting views. The sharp price drop has raised concerns, but historical patterns suggest a potential rebound. Short-term traders may find opportunities in both buying and selling, depending on how the market reacts in the coming days.

While the decline in open interest raises caution, long-term investors should watch for signs of renewed momentum. The next few days will be critical in determining DOGE’s direction. Whether to sell, hold, or buy depends on each trader’s risk tolerance and investment strategy.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.