Forecast: DOGE cracks critical support amid investor confidence decline
Selling pressure has kept Dogecoin under pressure following a 4% loss on Wednesday.
As profit supply decreases, major wallet investors dump, according to on-chain statistics.
Derivatives statistics show traders' mood declining amid negative positioning building.
After falling 4% the day before, Dogecoin (DOGE) falls on Thursday. As huge wallet investors sell, DOGE supply in profit decreases. Derivatives data shows bearish bets rising as customer interest declines. DOGE is bearish as it breaks below April's low, hitting $0.1000.
According to Santiment, investors with 100 million to 1 billion DOGE have 34.77 billion tokens, down from 36.14 billion on December 1. After losing almost 1 billion DOGE on December 10, the cohort has stayed constant. However, DOGE profit supply fell to 50.70% from 53.95% on December 3, indicating a continuous fall in demand.
Dogecoin falls on the futures side as the cryptocurrency market prepares for the US CPI on Thursday and the Bank of Japan's rate rise on Friday. CoinGlass shows DOGE derivative short holdings at 53.91%, up from 52.59% on Wednesday. A brief positional building indicates sell-side dominance and matches the wipeout of almost $5 million in DOGE long positions in 24 hours.
Dogecoin falls almost 6% this week, reaching the S1 Pivot Point at $0.1231. The meme coin's third straight losing week had its lowest daily closing since October 17, 2024.
If DOGE recovers from $0.1231, the 50-day EMA around $0.1556 may act as resistance.
