- Dogecoin and Bitcoin Cash are showing weakness as funding rates turn negative and futures market sentiment sours.
- However, consistent spot market buying suggests dip buyers may help stabilize prices if key support levels hold.
Dogecoin (DOGE) and Bitcoin Cash (BCH) took a hit on Tuesday, with prices sliding 3% and 8%, respectively. The losses came despite stability across major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and XRP. Behind the downturn lies a stark warning from the derivatives market — a shift in funding rates that suggests mounting bearish sentiment.
For Dogecoin, the weakness is most apparent in its futures data. Funding rates are teetering on the edge of negative territory, a red flag that traders are increasingly betting against the meme coin. At the same time, DOGE’s open interest has stayed flat since early February, signaling dwindling enthusiasm among leveraged players.
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or DOGE. Spot investors — the long-term holders — continue to show resilience. Exchange net flows reveal persistent outflows over the last three months, a clear sign that dip buyers are stepping in and accumulating during market weakness. Technically, DOGE is flirting with danger, forming its second multi-month descending triangle. A breach below the critical $0.1428 support could trigger a deeper fall toward $0.0906 unless buyers quickly intervene. Conversely, a breakout above resistance might propel DOGE toward $0.287.
Bitcoin Cash paints a similarly fragile picture. Funding rates plunged into the negative on Monday — their lowest since early March — coinciding with a sharp price dip. Like DOGE, BCH’s open interest has failed to recover, declining 50% over the past year, further underscoring fading interest in the futures market.
The spot market doesn’t offer much relief either. Coinglass data shows increased exchange inflows, indicating more investors are offloading BCH. Analysis from Santiment points to one-year holders as the main sellers, likely reacting to the recent price drop reaching their cost basis.
Technically, BCH faces pressure from a descending triangle. A breakdown below the $255–$222 support zone could deepen the selloff, while a decisive breakout above resistance might pave the way for a rally toward $428.
In both cases, the futures market spells caution — but spot market behavior offers a glimmer of hope. The question now is: will dip buyers have the strength to reverse the tide?
