Dogecoin Price Forecast: DOGE extends losses as market sentiments weakens

• Dogecoin extends losses for the third consecutive day on Thursday, with sellers capping gains just above $0.10.
• Derivatives data show a sharp fall in DOGE futures Open Interest as long liquidations cross $5 million in 24 hours.
• The technical outlook for DOGE is turning bearish as the RSI and MACD indicators suggest waning bullish momentum.

Dogecoin (DOGE) remains under intense selling pressure, extending losses for the third straight day. Retail sentiment suffers as the US Federal Reserve (Fed) delays interest rate cut, prompting a near-term sell-off in the crypto market and negatively impacting DOGE derivatives. The technical outlook for DOGE points to further losses as bullish momentum wanes.

Liquidation surge in Dogecoin derivatives signals downside risk

The Fed's decision to keep interest rates unchanged on Wednesday has weighed on the crypto market, sending Bitcoin (BTC) below $72,000 and the CMC Crypto Fear and Greed Index to 33, suggesting fear conditions among cryptocurrency investors. 

Consistently, market sentiment is shifting bearish for Dogecoin, as spot-market declines trigger forced liquidations in Dogecoin derivatives. CoinGlass data shows $5.49 million in DOGE positions liquidated over the last 24 hours, driven by $5.09 million in long liquidations, highlighting mounting bearish pressure.

Amid the increased liquidations, DOGE futures Open Interest (OI) has dropped by more than 8% over the same period to $1.06 billion, reinforcing risk-off sentiment.

Is Dogecoin ready for the fall?

Dogecoin is trading below $0.095 at press time on Thursday, running on a bearish course for the third consecutive day. The meme coin sits well below the declining 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which implies intense bearish pressure lingering at higher levels.

The recent rejection near the 50-day EMA at $0.1016, which has led to the current 3-day decline, reinforces the idea of a capped recovery within a medium-term bearish context.

The Moving Average Convergence Divergence (MACD) histogram has started to contract after a modest positive phase, while the MACD line is slipping back toward the signal line, hinting at fading upside momentum. The Relative Strength Index (RSI) at 48 remains close to the midline, suggesting a consolidative tone rather than a decisive trend reversal.

Dogecoin targets the February 11 low at $0.0879 as the next crucial area of support, which guards a deeper zone at the February 6 low of $0.0800.

For a fresh recovery, DOGE should sustain a daily close above the 50-day EMA at $0.1016, which would open an upward path toward the R1 Pivot Point at $0.1144.

(The technical analysis of this story was written with the help of an AI tool.)