- The bullish sentiment around DOGE fizzled out as the price fell.
- DOGE could rise to $0.09 if bulls capitalize on the rising buying momentum.
Contrary to what happened earlier in the week, Dogecoin’s [DOGE] social volume dropped to its lowest, Santiment data showed. On the 25th of January, the social volume had risen to 63.80. This initial hike implied that searches for DOGE climbed and were rampant in the market.
However, the decline at press time suggests that interest in the coin had waned. But AMBCrypto discovered that the social volume was not alone in this regard.
Bulls are no longer here
According to on-chain data analyzed from Santiment, the Weighted Sentiment also fell. As of the 21st of January, Dogecoin’s Weighted Sentiment was as high as 1.62.
This means that the broader market was bullish on the cryptocurrency. But recent comments and texts show that that was no longer the case.
However, the drawdown did not just happen without cause, with the price being the major issue. At press time, DOGE’s price was $0.079, representing a 13.72% decrease on a Year-To-Date (YTD) basis.
AMBCrypto’s analysis of the 4-hour chart showed that DOGE might continue to trade around the same region. This was evident in the indications the Accumulation/Distribution (A/D) showed.
As of this writing, A/D had stalled around the same area since the 20th of January. This stalemate implies that Dogecoin has not experienced any significant buying pressure of late.
If it stays the same way, the coin price could move between $0.07 and $0.08. While a notable uptick might not happen, the coin might also fail to nosedive.
However, the Relative Strength Index (RSI) was 50.70, suggesting that the bearish momentum had subsided. So, DOGE’s price may not sink like it has since 2024 started.
If bulls can capitalize on the buying momentum, then DOGE could rise toward $0.09. If not, the price might decline or continue its sideways movement.
In the meantime, Dogecoin Open Interest fell to $387.47 million, Coinglass data showed. Open interest (OI) refers to the total of all open positions in a contract.
With the OI, for every seller, there is a buyer. So longs (traders who predict a higher price) and shorts (those who forecast a lower price) are usually 50-50.
However, the decrease in OI suggests that traders are closing their positions, like in DOGE’s case. But if it had increased, it would have implied a surge in net positioning.
Read Dogecoin’s [DOGE] Price Prediction 2024-2025
From a trading perspective, the decrease in OI implies that DOGE’s current direction was getting weak. If the OI continues to decrease alongside the price action, the price could reverse upwards.
Should this be the case, the sentiment around DOGE might change while the price tries to approach $0.09.