DOGE Risks Deeper Correction if $0.211 Support Fails – Dogecoin up 2%

• Dogecoin price tests the $0.211 support as traders increase short bets and whales trim holdings.
• A close below $0.211 could send DOGE toward $0.181, while holding support may spark recovery to $0.247.

MarketCap data shows that leading memecoin Dogecoin traded around $0.2137 on September 2. This price level is key because it could decide if the coin moves higher or slips lower. The coin is trading positively, but traders are still careful since charts show possible risks if the support level breaks.

Traders Bet Against Dogecoin as Whales Reduce Holdings

Data from Coinglass shows more traders are now betting against Dogecoin. The Open Interest-Weighted Funding Rate has dropped to -0.0010%, meaning those expecting the price to fall are paying traders who hold long positions. In the past, this kind of move typically preceded a drop in Dogecoin’s price.

It is important to add that the long-to-short ratio points in the same direction, with selling positions now ahead of buying ones. This shows growing bearish sentiment as traders lose confidence in the short-term outlook. Meanwhile, On-chain data also reflects this shift in mood. 

Santiment figures reveal that large holders, often called whales, have reduced their positions. Wallets holding between 100,000 and 100 million DOGE tokens have sold a combined 250 million coins since August 25. This move by big investors points to weaker conviction and adds weight to the current selling pressure.

It is important to add that outside the price outlook, Dogecoin is entering a pivotal phase in the memecoin market. As noted in our earlier post, A source has suggested that a Dogecoin (DOGE) treasury may be launched soon, possibly led by Elon Musk’s personal lawyer.

Dogecoin Price Faces Crucial Test at $0.211

In a recent update, we noted expectations of a push toward the $0.30 level. On the contrary, Dogecoin price has since pulled back after failing to break above a previous ascending trendline. 

It dropped by nearly 3% on Monday, leaving the coin testing the 200-day exponential moving average at $0.211. This point is now the main support that traders are watching as the price sits at $0.2137 atop a 2% surge.

If the price closes below this level on the daily chart, analysts believe Dogecoin could slide further toward its next support at $0.181. The daily chart shows weak signs for Dogecoin. The Relative Strength Index is at 46, which is below the neutral level of 50. This points to slow momentum. The MACD indicator also shows selling pressure.

If Dogecoin stays above $0.211, it could try to bounce back. In that case, the next target would be around $0.247. If it fails to hold, the coin may slide lower. Traders are watching this level closely to see what direction it takes next.

In related news, CNF reported that Sergey Ivancheglo, the lead developer of Qubic, said on X that the community has voted to focus on Dogecoin next. Other options in the vote included Kaspa (KAS), Zcash (ZEC), and a few other ASIC-mined coins.