DOGE Faces Risk of Deeper Correction If Support Level $0.211 Fails

MarketCap data shows that the top memecoin Dogecoin is trading around $0.2137 on September 2nd. This price level is very important as it could determine whether this coin will be bullish or bearish. This coin is trading actively, but traders should still be cautious as the chart indicates potential risks if the support level is broken. Traders Bet Against Dogecoin as Whales Reduce Holdings Data from Coinglass shows that an increasing number of traders are betting against Dogecoin. The funding rate weighted by open interest has dropped to -0.0010%, meaning those who expect the price to fall are paying those holding long positions. Previously, this move often occurred before the price of Dogecoin fell. It is important to add that the buy/sell ratio is also moving in the same direction, with short positions currently outpacing long positions. This indicates an increasing pessimistic sentiment as traders lose confidence in the short-term outlook. At the same time, On-chain data also reflects this shift in sentiment. Data from Santiment shows that large holders, often referred to as whales, have reduced their positions. Wallets holding between 100,000 to 100 million DOGE tokens have sold a total of 250 million tokens since August 25. This move by large investors indicates weaker confidence and adds to the current selling pressure. It is important to add that besides price prospects, Dogecoin is entering a crucial phase in the memecoin market. As mentioned in the previous post, a source indicated that a Dogecoin investment fund (DOGE) may soon be launched, possibly led by Elon Musk's personal attorney. Dogecoin Faces Significant Challenge at $0.211 In the recent update, we noted expectations for a bullish move towards the $0.30 level. Conversely, the price of Dogecoin has fallen back after failing to break through the previous uptrend line. The price has fallen nearly 3% on Monday, causing the coin to test the 200-day exponential moving average at $0.211. This level is currently the main support threshold that traders are monitoring as the price is at $0.2137 after a 2% increase. If the closing price falls below this level on the daily chart, analysts believe that Dogecoin could slide further to the next support level at $0.181. The daily chart shows weak signals for Dogecoin. The Relative Strength Index (RSI) is at 46, below the neutral level of 50. This indicates a slowing bullish momentum. The MACD indicator also shows selling pressure. If Dogecoin maintains above the level of 0.211 dollars, it may attempt to recover. In that case, the next target will be around 0.247 dollars. If it cannot hold this level, the coin may slide lower. Traders are closely monitoring this level to see what the next trend will be. In related news, CNF reported that Sergey Ivancheglo, the lead developer of Qubic, stated on X that the community has voted to focus on the next Dogecoin. Other options in the vote include Kaspa (KAS), Zcash (ZEC), and a few other coins mined with ASIC.