Dogecoin extended its slide this week, dropping 8% on Monday and touching a multi-week low of $0.126 on Tuesday. At the time of writing, DOGE was trading a little above $0.127. The move came as risk appetite weakened across crypto, with the report linking the sell-off to renewed trade tensions between the United States and the European Union.
Buyers did step in earlier in the week and helped the token recover slightly for a brief period. That bounce did not last. Sellers regained control and pushed DOGE back toward the $0.127 area, while profit-taking spread across the digital asset market as capital rotated toward safer assets.
Futures demand cools as open interest falls to $1.44 billion
Derivatives data showed a clear drop in speculative participation. According to CoinGlass, Dogecoin futures open interest declined from $1.78 billion on Sunday to $1.44 billion on the day of the report, a drop of about 19%. Open interest tracks the total number of outstanding derivatives contracts that remain unsettled, so a decline usually points to less capital entering the market.
That matters for short-term price structure. When open interest contracts, momentum can weaken as leveraged traders reduce exposure and fewer new positions replace them.
More DOGE moving onto exchanges adds to sell-side risk
On-chain data added another bearish signal. Nansen data showed that the total amount of DOGE held on exchanges increased by nearly 8.4% over the past 30 days, reaching 31.4 million tokens. Tokens moved to exchanges are often watched closely because holders commonly transfer assets there when preparing to sell.
That does not guarantee an immediate decline, but rising exchange balances during a weak price phase can increase concerns about spot-market supply.
Daily chart shows a double top with $0.10 in focus
On the technical side, Dogecoin’s daily chart has formed a classic double top. Price failed twice to break through a key resistance area, and bulls were unable to print a higher high. That setup is widely viewed as a sign that buying pressure is fading and that the trend may be at risk of reversing lower.
Indicators were aligned with that view. The MACD lines were pointing down, while the Aroon indicator showed Aroon Down at 92.86% and Aroon Up at 0%, reflecting strong bearish control. Traders are now watching the $0.10 psychological support level. A break below it could open the way for deeper losses, while a rebound above $0.154 would invalidate the current bearish setup.