Could the price of Dogecoin (DOGE) be headed for another rally?

Dogecoin has been one of the most stable gainers in the bear market, posting gains of over 35% over the past 10 days. However, what will be the fate of the DOGE price with the price action weakening and the end of the year closing?

Dogecoin price action offered some respite to traders in a largely bearish market. DOGE was one of the few currencies that saw sustained gains for the last 10 days and reached higher levels despite the bear market.

From a technical perspective, the DOGE price gains left short-term holders in decent profits, but with the rally weakening, the future of the coin looked shaky.

Interest in Dogecoin Dividends

While the recent DOGE price increase was welcomed, the question remained whether DOGE would see bullish momentum before the end of the year. On the one-hour chart, the price of DOGE has started to decline.

At press time, DOGE is trading down by 5.27% on the daily time frame at $0.0978. The drop in DOGE price was accompanied by a drop in trading volume. There was a decline of 26.47% in the daily trading volume and was above the mark of $822.84 million.

Dogecoin (DOGE) trade volume |  Source: Sentiment
DOGE Trade Volume | Source: Sentiment

Looking at the social metrics for DOGE, it was clear that there was no-to-low market enthusiasm for the coin. Weighted sentiment had dipped below negative levels while social volume remained low.

Social Metrics |  Source: Sentiment
Dogecoin Social Metrics | Source: Sentiment

The drop in volume and social metrics does not indicate any major demand or interest in DOGE at this point in time.

Furthermore, the price Daily Active Address (DAA) divergence suggested some bearish pressure for the coin, which could lead to further losses in the near term.

DOGE price DAA divergence |  Source: Sentiment
DOGE price DAA divergence | Source: Sentiment

DOGE spot traders are exhausted with the recent bull run. A lot of short-term participants may have booked profits following the recent DOGE price run, with the indicator flashing a sell-signal.

futures market turning red

At press time, Dogecoin’s open interest is down nearly 9% to $361.3 million. With a sustained decline in market open interest, this could mean that a short-term bearish trend is on the way.

DOGE Total Open Interest |  Source: Coinage
DOGE Total Open Interest | Source: Coinage

The total open interest of DOGE was falling for the last three days. Furthermore, the prolonged liquidation of over $1.9 million in Dogecoin added to the bearishness in the market.

DOGE short liquidation |  Source: Coinage
DOGE short liquidation | Source: Coinage

With over $1.9 million worth of longs being liquidated, DOGE price looked set for a short-term pullback.

For now, the $0.086 mark supports the DOGE price as 94,950 addresses hold over 12.72 billion DOGE at that level.

Doge In/Out Of The Money Around Price |  Source: IntotheBlock
In/out of the money around price | Source: IntotheBlock

While the DOGE on-chain metrics have ended up for a near-term rally, DOGE price could see an uptrend in case of retail enthusiasm. Besides, if the bulls of DOGE keep the price above the $0.107 mark, an uptrend can be expected. At the $0.107 mark, 4290 addresses hold over 8 billion DOGE.

Once the overhead resistance is cleared, the price of DOGE could see an uptrend towards the end of the year, but for now, DOGE holders may see some losses.

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