Dogecoin faces a risk of sharp decline as selling pressure increases

Dogecoin (DOGE) records its second consecutive decline, trading around $0.090 at the time of writing on Saturday. Previously, this meme coin reached its weekly high of $0.104 on Wednesday. However, the rapid rally was halted as the market entered a period of high volatility amid increasing risk-avoidance sentiment due to geopolitical tensions between the U.S., Israel, and Iran.

Not only DOGE, but major digital assets like Bitcoin (BTC) and Ethereum (ETH) are also undergoing corrections as conflicts in the Middle East appear to be escalating, increasing instability in the global financial markets. Many governments fear that prolonged conflict could drive up oil and energy prices. Especially if strategic shipping routes like the Strait of Hormuz are disrupted, inflationary pressures could rise, and plans to cut interest rates in 2026 may be delayed.

Retail demand weakens as Dogecoin stalls

Dogecoin’s derivatives market continues to show clear signs of weakening, with open interest (OI) in futures contracts dropping to $1.04 billion on Saturday from $1.14 billion the previous day. This decline indicates that speculative capital is gradually withdrawing from the market, reducing short-term trading momentum.

According to data from CoinGlass, Dogecoin’s OI once hit a record $6.01 billion in September but then plummeted sharply. This trend reflects risk aversion still dominating the cryptocurrency market. Concerns over a bear market cycle, macroeconomic instability, and geopolitical tensions continue to erode retail investors’ interest in this meme coin.

In this context, if OI does not recover soon and maintain a stable upward trend—an indicator of renewed investor confidence—the downward trend of DOGE is likely to persist in the near future.

Dogecoin Open Interest (OI) | Source: CoinGlass## Technical Outlook: Increased Downside Risks

Dogecoin is currently trading around $0.090, but the short-term outlook leans slightly negative. The meme coin continues to weaken after failing to sustain the rally from its recent high of $0.104, indicating cautious buying interest. Notably, a resistance level is suppressing the price recovery efforts, maintaining the broader downtrend structure.

From a technical perspective, the MACD line remains above the signal line, but the green histogram bars are gradually shrinking, reflecting waning bullish momentum rather than strengthening for a breakout. Meanwhile, the RSI hovers around the 40 mark, suggesting that buying pressure is still limited while bears maintain control.

Daily DOGE/USDT Chart | Source: TradingView Regarding key technical levels, the $0.104 zone continues to serve as the nearest resistance, coinciding with the recent reaction high and trendline resistance. If the price can decisively break through this area, DOGE could extend its rally toward $0.11 according to the SuperTrend indicator, before targeting the 100-day EMA around $0.12.

Conversely, immediate support is at $0.09, corresponding to the recent low. A daily close below this level could trigger new selling pressure, pushing the price back to $0.0880, or even lower toward the support zone at $0.0850.

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