Dogecoin has experienced a significant drop in the past few hours, faced with a net sale near the resistance levels. This drop was triggered by a declaration by Elon Musk, the head of the Ministry of Effectiveness of the Government (DOGE), stating that the United States government does not intend to adopt the far known, Dogecoin.
Negative Dogecoin Netflow trends
Recently, the Dogecoin price has taken a hit, which has a considerable impact on various measures on the channel. According to Coinglass data, Dogecoin has experienced more than $ 9 million in total liquidations. This ventilation included 6.5 million dollars from buyers closing long and $ 2.55 million positions from sellers ending their positions.
In addition, the open interest of Dogecoin, which measures the total ongoing commercial positions, dropped by 1.44%, falling to around 1.6 billion dollars. This decrease follows an announcement by Elon Musk, adding that its government initiative, the Ministry of Effectiveness of the Government (DOGE), is not affiliated with the memes play. This clarification intervened after confusion on a website showed Dogecoin mascot, which temporarily sent the price of dogecoin on 14% in February.
Read also: Elon Musk says that the American government will not use Dogoin, prices decrease at 5%
Elon Musk shared that the initiative should initially be called “government efficiency commission”, but was renowned following the comments of the public. The name coincidences by coincidence an acronym of Dogecoin, showing the well -known Bondness of Musk for Dogecoin.
However, the recent denial of Elon Musk’s approval created a mixed feeling on the market. This has caused Doge Traders to lose, resulting in a sharp drop in its price.
Coinglass data indicate that Dogecoin has experienced a significant exit of $ 4.2 million in exchanges in the last 24 hours, reporting that many holders withdraw their assets. Despite the recent drop in price, this movement suggests that investors are taking the opportunity to accumulate more dogecoin. Such activities could potentially stabilize and increase the price of Doge if the purchase pressure continues to build during these lower price levels.
What is the next step for the DOGE price?
Dogecoin fell below the EMA20 trend line, indicating that the feeling remains negative. However, buyers strongly defend a drop below $ 0.16 level. During the editorial staff, Dogecoin is negotiated at $ 0.167, decreasing by more than 0.56% in the last 24 hours.
EMA decreases 20 days ($ 0.171) and the RSI below the median point suggest a short -term lower feeling. The DOGE / USDT pair can target a support level of $ 0.143. A drop in this level could send the price to $ 0.11.
On the other hand, if the price is revealed from the current level and moved above the 50-day SMA, this will point out that the bulls are trying to form a lower. If buyers push the price to EMA trend lines, this will increase the possibility of a break greater than $ 0.2 of resistance line.
If buyers keep the momentum in the resistance zone at $ 0.25, Dogecoin could try an increase of $ 0.29.
