Outflow of Dogecoin Reached 120 Million USD in April — Will There Be More Losses?

Dogecoin holders withdrew from the spot market in April, as the leading meme coin faced increasing selling pressure. The lack of new capital flowing into DOGE reflects a decline in investor confidence and adds further downward pressure on this alternative coin. Selling off DOGE is worse when the outflow of money is greater than the inflow of money. Since the beginning of April, DOGE has witnessed a continuous outflow of net funds from the spot market, totaling over 120 million dollars. The net inflow during the same period was negligible, just under 5 million dollars according to Coinglass.

When an asset records cash outflows, the amount of coins or tokens of that asset sold or withdrawn from the spot market exceeds the amount bought or deposited. This indicates that DOGE investors are losing confidence and choosing to liquidate their held assets due to the increasingly pessimistic market conditions. The continuous outflow of funds from meme coins over the past two weeks reflects a lack of new demand for altcoins. If this trend continues, DOGE's price may remain within a limited range or face another bearish cycle. Technically, the Relative Strength Index ( RSI ) of Dogecoin continues to trend down on the daily chart, further confirming the bearish outlook. At the time the press reported, this important momentum indicator, which measures the overbought and oversold conditions of an asset, is below the neutral line of 50 at 47.61.

When the RSI of an asset falls below the centerline, bearish momentum strengthens. This indicates that selling pressure for DOGE is beginning to outweigh buying demand, signaling the potential for the asset's price to decrease. DOGE is at risk of testing the annual low. With the increasing volatility of the cryptocurrency market due to Donald Trump's ongoing trade war and the current difficulties of DOGE in attracting new investment, this meme coin may test new lows in the near future. If selling pressure rises, DOGE could return to its yearly low of $0.12.

Conversely, the new demand for meme coins will undermine this bearish outlook. In that scenario, the price of DOGE could exceed $0.17 and rise to $0.20.