DOGE risks losing key $0.10 level despite strong retail interest

The cryptocurrency market is giving up some of its gains as the new weekly candle opens after an excellent performance on Sunday.

Bitcoin has dropped below $81,000, while Ether risks losing the $2,300 support level. Memecoins, led by Dogecoin, are also in the red following a poor start to the week.

DOGE erased the 3% gains made on the previous day and now risks dropping below the $0.1000 psychological level.

However, retail strength in the memecoin remains strong despite heavy long liquidations over the last 24 hours, anticipating a rebound. 

The momentum indicators for Dogecoin are currently mixed, suggesting that traders are unsure about its next direction. 

Retail strength could push DOGE’s price higher

Dogecoin is up by less than 1% on Monday, erasing the gains it accumulated the previous day. 

However, Dogecoin retains retail interest in the leverage market despite the bearish start to the week. 

Data obtained from CoinGlass shows that the DOGE futures Open Interest (OI) is up over 7% in the last 24 hours to $1.58 billion, indicating a rise in active leverage-based positions. 

Furthermore, the OI-based funding rates of 0.0085% reflect a bullish bias among traders, who are willing to take long positions at a premium.

Despite that, Dogecoin’s total liquidations exceeded $8 million over the last 24 hours, driven by $6.2 million in long liquidations.

This suggests weakness in the spot price. A continuous surge in OI with a positive funding rate could lead to a long squeeze. 

Dogecoin price forecast

The DOGE/USD 4-hour chart remains bearish and efficient as Dogecoin sustains its value above $0.1000 at press time on Monday.

At press time, DOGE is trading above the 50-day and 100-day Exponential Moving Averages (EMAs) at $0.1016 and $0.1056, respectively.

This positioning suggests underlying dip-buying interest.

However, the leading memecoin continues to struggle below a key resistance trendline connecting the October 13 and 27 highs, near the $0.1161 supply zone.

The momentum indicators remain neutral at the moment.

The Moving Average Convergence Divergence (MACD) holds inches above the signal line in the positive territory, suggesting that the bulls are still in control. 

Meanwhile, the Relative Strength Index (RSI) at 49 is below the neutral 50, indicating a declining bullish momentum. 

If the rally persists and the bulls close the daily candle above the $0.1161 supply zone, it would confirm the declining trendline breakout, making the 200-day EMA at $0.1230 the next significant hurdle.

However, if the bullish trend fails, the sellers would encounter immediate support just around the  100-day EMA near $0.1056 and the 50-day EMA around $0.1016.

A decisive candle close below these levels would be expected to attract buyers.

However, the broader bullish structure would remain intact if DOGE’s price stays above these averages.