**Key Takeaways**
**What is the short-term outlook for Dogecoin?**
Though there is some evidence of on-chain accumulation, it likely isn’t enough to prevent another 18% price slide.
**Why is such a price slide expected?**
Dogecoin’s On-Balance Volume (OBV) fell below the lows it established in August—a sign that selling volume inundated the spot market in October.
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Dogecoin (DOGE) suffered a bearish setback over the last 24 hours as Bitcoin (BTC) briefly dropped to $106.3k before bouncing higher. At its lowest point, DOGE hit $0.176 on Thursday, 30 June, marking a 9.34% slide from the day’s high of $0.194.
At the time of writing, Dogecoin exhibited strong short-term bearish sentiment, with a 3.55% drop in Open Interest over 24 hours. However, bulls managed to defend the $0.175 demand zone—for now.
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### Importance of $0.178 and the Warning Sign for Dogecoin Bulls
Bitcoin has been trading within a range since August, fluctuating between $124.5k and $107.5k. The recent plunge below this range low suggests a chance for a bullish rebound, provided there is strong spot demand. Consequently, a Dogecoin rebound is also possible but will heavily depend on capital inflows in the coming days.
While the $0.175-$0.185 demand zone has been defended recently, selling pressure remains high. This is evidenced by the OBV forming a new low, dipping below the baseline set back in August. The recent selling volume has been overwhelming, and it appears it may only be a matter of time before the bulls cave to the pressure.
If Dogecoin falls below $0.175, the next support level to watch is $0.15. This level has acted as the base of the rising wedge pattern that began in June.
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### Network Activity and On-Chain Indicators
Daily active addresses on the Dogecoin network have been declining throughout October, hinting at reduced network activity and a fall in organic demand for the coin. However, the mean coin age has seen an uptick over the past two weeks, which could indicate some level of on-chain accumulation despite the spot selling pressure reflected in price charts.
The age consumed metric has experienced some spikes recently, but nothing extreme.
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### Conclusion
Although some on-chain data suggests potential accumulation, these signals are unlikely to be strong enough to counteract the recent selling spree. Given the overwhelming selling volume and declining network activity, a bearish bias remains justified, and a further price drop to around $0.15 can be anticipated in the near term.
https://ambcrypto.com/dogecoin-another-18-price-drop-may-be-on-the-cards-because