Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.
- Dogecoin was bearish within the near-term however bullish on larger timeframes.
- DOGE merchants can go for scalp brief trades if the value falls under the near-term help, focusing on $0.07.
Dogecoin [DOGE] rallied 8% final week, going from the 7 August low at $0.0717 to $0.07745 on 12 August. Since then, it has retraced most of its good points. The momentum of the meme coin signaled additional draw back was potential.
Reasonable or not, right here’s DOGE’s market cap in BTC’s phrases
Dogecoin was within the grip of bearish sentiment, nevertheless it was buying and selling simply above the next timeframe space of curiosity. Due to this fact, whereas a reversal was possible, one other drop towards $0.07 might be anticipated.
Dogecoin had some demand, however a 5% drop was nonetheless possible
The RSI confirmed bearish momentum as DOGE neared the help stage at $0.07325. The Quantity Profile Seen Vary device additionally highlighted this stage because the Worth Space Low. The Worth Space Excessive and Level of Management have been at $0.0797 and $0.076 respectively.
These overhead ranges represented robust resistance. The market construction of DOGE was bearish as soon as extra after it slipped under the $0.075 mark on 14 August. But, up to now week, the OBV has slowly climbed larger. This confirmed shopping for stress was stronger regardless of the current losses.
The cyan field that prolonged from $0.068-$0.074 represented a bullish breaker block on the 3-day chart. On that larger timeframe chart, the market construction and momentum have been bullish. Due to this fact, a drop towards $0.069-$0.072 might see an inflow of Dogecoin patrons.
In that state of affairs, bulls can await a decrease timeframe market construction break to seek out shopping for alternatives.
The futures market confirmed bearish sentiment remained dominant
Up to now three days, each the value and the Open Curiosity have slowly slid decrease. This indicated bearish sentiment prevailed within the futures market. Furthermore, the spot CVD was additionally in a downtrend.
The inference was that DOGE sellers have been dominant, which opposed the findings from the OBV.
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The worth motion chart on the H4 timeframe confirmed that $0.073 was an necessary short-term help. If DOGE was unable to carry on, it might possible fall to $0.07, a 4% drop.
The OBV confirmed accumulation however the spot CVD confirmed promoting stress, with the latter being the extra compelling piece of proof.