Dogecoin (DOGE) has fallen below a key support level amid selling pressure. With large-scale capital flowing out of the spot market and long positions continuing to be liquidated in the futures market, further declines are being raised as a possibility.

[Price Status: Down 5.22% in 24 Hours] As of October 9, Korean time, according to CoinMarketCap, Dogecoin traded at $0.084, down 5.22% over the past 24 hours. In particular, after Bitcoin (BTC) fell below $84,000 following the release of hawkish U.S. Federal Open Market Committee (FOMC) meeting minutes, investor sentiment across the cryptocurrency market has weakened.

[$55 Million Outflow from Spot Market Over Four Days] According to data from CoinGlass cited by overseas crypto outlet CoinGape, a total of $55 million flowed out of the Dogecoin spot market over the four days through October 8 (local time). This indicates that selling pressure is outweighing buying pressure.

The futures market also came under strain. CoinGape reported that selling pressure in the spot market, combined with long position liquidations in the futures market, drove Dogecoin's price lower. According to CoinGlass data, Dogecoin recorded approximately $16 million in long position liquidations over two days, and with this added liquidation pressure, the price fell to its lowest level in more than two weeks.

ETF demand has also been weak. According to SoSoValue data cited by CoinGape, Dogecoin exchange-traded funds (ETFs) have recorded no net capital inflows in October.

[Declining Open Interest: A Move Toward Risk Aversion] Investors in the Dogecoin futures market are showing risk-averse behavior. According to CoinGape, Dogecoin's open interest as compiled by CoinGlass decreased from $1.53 billion to $1.38 billion. The decline in open interest suggests that as investors reduce risk, demand for Dogecoin futures positions is weakening.

However, the recent price decline has also drawn more investors into short positions betting on further downside. CoinGape reported that Dogecoin's long/short ratio has consistently fallen below 1, standing at 0.89 at the time of reporting. This shows that short position accounts are relatively on the rise.

Exchanges showed different trends. On Binance's futures market, Dogecoin's long/short ratio was recorded at 2.41, meaning long position accounts outnumber short position accounts. On OKX, the number of Dogecoin long position accounts was four times greater than short position accounts.

[$0.083 Support Level Is the Key Level to Watch] CoinGape analyzed that as Dogecoin broke below a key technical support level, the likelihood of further declines has grown. On the daily chart, Dogecoin's price fell below the $0.092 support level, corresponding to the 61.8% Fibonacci retracement zone. According to CoinGape's analysis, Dogecoin could retest its next support at $0.083, and if that price also gives way, the downtrend could continue down to $0.078.

Technical indicators also point to weakness. CoinGape explained that Dogecoin's relative strength index (RSI) stands at 42, remaining in bearish territory. In particular, since the RSI has not yet dropped below 30 into oversold territory, there remains room for the price to fall further.

Meanwhile, there are also signs that the downtrend is not particularly strong. According to CoinGape, Dogecoin's average directional index (ADX) is at 25, with the indicator line pointing downward. This is interpreted to mean that although Dogecoin's price has fallen to its lowest level in two weeks, the downtrend itself is not strong.

CoinGape analyzed that if selling pressure is exhausted, Dogecoin would need to break through the resistance level corresponding to the 61.8% Fibonacci retracement zone in order to return to a strong uptrend. Ultimately, whether Dogecoin can hold the $0.083 support level, or conversely reclaim the $0.092 resistance level, was presented as the key variable in gauging the future price direction.

[This article is by no means investment advice. The content may merely represent opinions, so please do not use it as a reference or source for investment decisions. All investments are made at each individual's own judgment, and the final responsibility lies with the investor. This publication bears no responsibility whatsoever.]