Dogecoin slipped deeper into bearish territory this week, falling nearly 8% to a multi-week low around $0.126, as weakening risk sentiment and declining derivatives activity weighed on the meme token.
The broader crypto market extended its pullback after renewed geopolitical tensions dented investor appetite for risk assets. Comments from U.S. President Donald Trump threatening fresh tariffs on European allies reignited concerns around global trade, triggering profit-taking across digital assets as capital rotated toward safer alternatives.
Although dip buyers attempted to stabilize Dogecoin earlier in the week, selling pressure quickly returned. At the time of writing, DOGE was hovering just above $0.127, struggling to regain upward momentum.
Futures open interest drops sharply
Bearish pressure has been reinforced by fading demand in the derivatives market. Data from CoinGlass shows that Dogecoin futures open interest fell by roughly 19%, sliding from $1.78 billion on Sunday to about $1.44 billion.
Open interest reflects the total number of active futures contracts. A sustained decline typically signals reduced speculative participation and less fresh capital entering the market, which often weakens price momentum and increases the likelihood of continuation to the downside.
DOGE exchange balances rise
Another warning sign comes from on-chain data. According to Nansen, the amount of DOGE held on centralized exchanges has increased by nearly 8.4% over the past 30 days, reaching approximately 31.4 million tokens.
Historically, rising exchange balances suggest investors are moving assets to trading venues in preparation for selling, either to secure profits or cut losses — a trend that often precedes additional downside pressure.
Double top pattern signals bearish reversal
From a technical perspective, Dogecoin’s daily chart has formed a classic double top pattern. After two failed attempts to push above a key resistance zone, bulls were unable to establish a higher high, signaling exhaustion in buying momentum and increasing the probability of a trend reversal.
Momentum indicators support the bearish case. The MACD has turned lower, while the Aroon indicator shows the Aroon Down near 93% and the Aroon Up near 0%, indicating that sellers remain firmly in control.
Key levels to watch
Traders are now closely monitoring the $0.10 psychological support level. A decisive break below this zone could open the door to a deeper selloff, particularly as it would represent a failed support-resistance flip.
On the upside, a recovery above $0.154 would invalidate the bearish double top structure and potentially restore bullish momentum. Until then, Dogecoin appears vulnerable to further downside if broader market conditions remain risk-off.
