Dogecoin Faces Crucial Support at $0.121 Amid Trading Volume Drop

• Dogecoin’s current price trends show resistance at $0.1244 and $0.125, with strong support at $0.121 and $0.122.
• The funding rates suggest slight bullish sentiment, but decreasing momentum indicates potential caution ahead.
• A significant decrease in Dogecoin’s trading volume and substantial long liquidations hint at potential downward pressure.

Dogecoin (DOGE), priced at $0.1242, has seen a slight decrease of 0.24% over the past day. With a market cap of $17.98 billion, Dogecoin maintains a significant presence in the cryptocurrency market. The 24-hour trading volume stands at $484.19 million, reflecting a decrease of 29.24%. This drop in trading activity might indicate a reduced short-term interest in the coin.

The price trend analysis reveals key resistance and support levels crucial for traders. The price has recently hit the $0.1244 level a few times, suggesting it is a short-term resistance level. Another slight resistance point is around $0.125, highlighted by brief spikes in the chart. 

On the downside, the price seems to find strong support, around $0.121, bouncing back multiple times from this level. Another support level is at $0.122; the price consolidates before moving upwards.

As per Coinalyze data the aggregated funding rate average stands at 0.0073. This positive funding rate suggests a slight bullish sentiment in the market, although the momentum is decreasing. Similarly, the aggregated predicted funding rate average is at 0.0046, which is also positive but lower than the actual funding rate. This indicates an expected lower bullish sentiment in the near future.

According to Coinglass data, Dogecoin’s trading volume has significantly decreased, down 35.97% to $765.20 million. This decline signals reduced market activity and interest. Open interest remains relatively stable despite the lower trading volume, with a slight decrease of 1.94%. This stability suggests that while fewer new trades are initiated, existing positions are largely maintained.

However, recent liquidation data shows a considerable impact on long positions, with substantial liquidations totaling $571.14K over the past 24 hours. This points to potential downward pressure on DOGE’s price. 

The 1-week RSI for Dogecoin reads 47.18, indicating that it is currently in neutral territory. This suggests a potential for a price reversal in the near future. Additionally, the 1-week MACD trading below the signal line indicates a bearish trend.