Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Dogecoin’s recent gains have been impressive, with a 7% increase since 31 December.
- It is not hard to see that the DOGE chart at higher time frames showed a bearish bias.
Bitcoin has remained steady on the price charts for the past few weeks. The altcoin market saw a bullish impetus on January 4. After trending downwards in December, many assets in the crypto space have seen gains in recent days.
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Dogecoin was among these coins. The meme coin maintained its bearish bias over a longer timeframe. Trading volume has been declining steadily since mid-December. If DOGE does not regain $0.078 as support it is likely to move further south in the coming week.
The bullish-order block has been broken. Here’s what to do next
The price chart’s lower red box indicated a bullish order block that was tested in December. Resistance was reached at $0.078, and DOGE bulls were weak over the past three weeks.
This bullish order block was flipped to a bearish breaker when the session closed below $0.071. Market structure was also bearishly biased. It would be reversed if the price moves back above $0.0789.
It is also worth noting that the consolidation timeframe was significantly shorter than the $0.0789 resistance level. It was therefore likely that a move towards the $0.077-$0.079 zone would provide a low-risk, high reward shorting opportunity.
How many DOGEs will you be able to buy for $1?
Since 19 December, the A/D indicator had fallen to lower levels. This indicates that there is some buying pressure on the market. Despite this, buyers were weak and no new highs were set. The RSI fell below neutral 50, indicating that momentum has been bearish for the past week.
Spot CVD and Open Interest on the Rise – Does this mean Bulls Have a Chance of Breaking?
According to Coinalyze data, Cumulative Volume Delta was on the rise from January 1. Although it’s only for a few days, this is something bulls can be encouraged by. Slowly rising prices led to an increase in Open Interest, which allowed capital to enter the market.
The funding rate Recent days were also positive, highlighting bullish sentiment in the lower timeframes. However, the bulls are yet to initiate a rally in the higher timeframes.
Short sellers could earn profits if Dogecoin’s bearish trend continues. Bulls should wait for a price move above $0.08 before bidding.