Does the price of Dujakin go towards a 13%decline? Technical signals answer

The Dogin price (Doge) faces increasing pressure amid a decline in network activity and the weak interest of investors, which raises fears of additional decline in the coming period.

The currency, which recently achieved 84%, has returned since the beginning of July, losing more than 23% of its value, with a decrease in the price from a summit of $ 0.2873 to about $ 0.2219 before it currently settled around $ 0.2372 at the time of writing this report.

Decreased network activity is a negative indicator

Despite the last large rise in the price of DOGE, the interaction on the network did not accompany it, and the number of active addresses daily that interact with the protocol recorded only about 70,000 compared to a peak of 517,000 in June and 675,000 in May.

This sharp decline in the number of active users reflects enthusiasm around the currency, which makes maintaining the upward trend difficult in light of this stalemate in the interaction.

A decline in the interest of traders in derivatives

Among the disturbing signals is also a significant decline in dugukin futures, as the “Open Interest” index – which reflects the volume of money invested in the derivative DOGE contracts – reflects its peak at $ 5.35 billion to $ 4.34 billion.

And when this indicator decreases, it often means the withdrawal of traders and the retreat of confidence in the upward direction.

This decline has led to a wave of forced liquidation in the market that included about 53 million dollars in just 24 hours, of which 45 million dollars are eliminated, or about 85% of the total liquidation, and this liquidation means that many investors were betting on the rise, but the trend reflects them strongly.

Technical signals suggest landing

Technically, short -term indicators show clear sales signals. The rapprochement and divergence index (MACD) gave a negative signal after the blue line intersects below the red line, while the red columns appear below the zero line continuing the negative momentum.

The RSI Index also declined from the purchasing saturation area at 78 to settle nearly 40, indicating some positive momentum, but it has not yet been proven that it is sufficient to turn the direction, and the levels of support and important resistance are currently represented by the SIA moving average for 100 periods at 0.2244 dollars, as a level of support, and the moving average of 50 days at 0.2428 dollars as resistance.

Do you go to the level of $ 0.2064?

If weakening persists in momentum and pressing long centers, Dujakin is expected to break the current support, which may push the price to drop by up to 13% to settle at a possible support close to $ 0.2064.

This scenario becomes more likely if the indicators of network reaction and attention to derivatives are not improved soon.