Over the past three days, the price of Dogecoin has experienced a 14% decline, erasing a portion of the recent 48% gains. Bullish traders who anticipated a positive trend were left disappointed, with the crash resulting in long liquidations totaling $4 million.
Despite the downturn and the Binance-related developments on Tuesday, there remains a level of optimism among DOGE investors, as indicated by positive funding rates across exchanges. Investors, currently facing losses, maintain a positive outlook on a potential recovery, as reflected in their derivative positions.
For the third consecutive day, the price of Dogecoin has experienced a significant decline.
Currently trading at $0.0749, Dogecoin has experienced a 14% decline over the last three days. Despite the significant profits gained by investors with a 48.12% surge in the past four weeks, a substantial portion of those gains is now at risk.
Approximately one-third of the profits garnered by DOGE holders have already been erased, indicating a potential further decline. This is evident from the Moving Average Convergence Divergence (MACD) indicator, which displays a bearish crossover along with a red bar on the histogram, confirming a bearish momentum.
There is a likelihood that DOGE could test a critical support level at $0.0700, and if this level is breached, it may not only undo a significant portion of recent gains but also pave the way for a decline to $0.0602.
![](https://sollcrypto.com/wp-content/uploads/2023/11/Screen-Shot-2023-11-22-at-8.50.55-AM.png)
Yet, should investors’ optimism prevail over the bearish signals in the broader market, and if DOGE rebounds from $0.0747, there is potential for a substantial recovery, possibly recouping most of the recent losses. In this scenario, the bearish thesis would be negated, presenting the meme coin with an opportunity to reclaim $0.0800.
Those holding DOGE remain optimistic.
Investors in Dogecoin have encountered losses, and they are not alone, as DOGE traders have experienced the inverse of profits over the past three days. Those who held long positions in anticipation of a recovery suffered losses exceeding $4 million in the last 24 hours and even more over the last three days.
![](https://sollcrypto.com/wp-content/uploads/2023/11/Screen-Shot-2023-11-22-at-8.52.18-AM.png)
A favorable funding rate suggests an increased number of traders taking optimistic long positions, anticipating a future rise in the asset’s price. Consequently, if the Dogecoin price aligns with the expectations of its traders and investors, a decline might be averted; however, failure to do so could result in additional losses.