Overseas cryptocurrency media outlet Cointelegraph reported that the price of Dogecoin (DOGE) was trading at $0.102 on May 25 (local time), down 3.29% over the past 7 days.

According to Cointelegraph, Dogecoin has dropped 12% since trading at $0.117 on May 14. The media outlet cited ▲ the slowdown in Bitcoin and the overall virtual asset market ▲ a decrease in open interest ▲ and a bearish chart pattern as the background for the poor price performance.

Market Slowdown and Spread of Fear

According to Cointelegraph, Bitcoin has dropped from $82,000 to $77,000 over the past two weeks, and Ethereum is also in a situation where it could be pushed below $2,100. Based on historical trends, the media explained that when Bitcoin falls, it is difficult for Dogecoin to rise without a catalyst to attract retail investors' attention.

According to a Cointelegraph report citing CoinMarketCap data, Dogecoin's trading volume decreased by 28% over 24 hours to reach $556 million. Although whale investors recently purchased 525 million DOGE, they have failed to attract buying interest from retail investors.

The virtual asset Fear & Greed Index points to 30, indicating that the market is in the fear zone. Cointelegraph forecasted that if buying pressure continues to hesitate, the price of Dogecoin could fall below $0.10.

For Dogecoin to rise, Bitcoin must climb above $80,000, but a recent Bitcoin price analysis by Cointelegraph mentioned that BTC could drop to $71,000 before rebounding. In this case, it may also be difficult for DOGE to rise.

Open Interest Decreases by $450 Million in 10 Days

Dogecoin's open interest is also decreasing. According to Cointelegraph, DOGE's open interest fell from $1.76 billion on May 15 to $1.31 billion as of May 25. The media explained that a decrease of $450 million in just 10 days means investors are not confident in Dogecoin's rise.

Open interest decreased while the long/short ratio stands at 0.91. Cointelegraph interpreted this as meaning more investors are seeing the possibility of the Dogecoin price falling below $0.10 rather than reaching its January high of $0.15.

Rounding Top Chart... $0.098 Support Level is Key

The chart pattern was also presented as a burden. Cointelegraph explained that a rounding top pattern, which appears when an upward trend runs out of steam, is forming on the Dogecoin daily chart. The depth of this pattern is 16%.

If the Dogecoin price falls below the $0.098 support level, it could drop an additional 16% down to $0.082. However, Cointelegraph believed that if it holds above $0.098, the downward trend to $0.082 can be avoided.

However, this requires the support of buying pressure, and currently, investors are not easily stepping forward due to fear. The media added that if Dogecoin avoids the bearish trend, it could attempt to rise again and return to $0.118, the upper boundary of the rounding top pattern.

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