Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Dogecoin has a bearish structure on the 4-hour chart.
- If Bitcoin bounces higher, DOGE would likely follow – but the $0.068 resistance zone could rebuff the bullish efforts.
Dogecoin [DOGE] saw a strong rally initiated in June. The price went from $0.058 to $0.0835, a 44.2% rally in 41 days. The market structure of the coin flipped bearishly on 15 August, when DOGE bulls were unable to defend a key support level at $0.0725.
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In the past 36 hours, Bitcoin [BTC] fell from $25.8k to $24.9k, where some buyers entered the market. This drove a bounce in prices, and BTC was trading at $26.1k at press time.
Despite the short-term volatility, it appeared likely that further losses were in store, although a move higher in search of liquidity could not be ruled out.
The bearish order block could offer a good entry- but what are the chances of a retest?
Source: DOGE/USDT on TradingView
A BTC bounce toward the $28k-$28.5k resistance was a possibility. The trading volume in the crypto market was low, and the sentiment was bearish, but the $25k area was a higher timeframe demand zone.
Similarly, Dogecoin was also trading within a higher timeframe demand zone (cyan box) that stretched from $0.0581 to $0.0622. This region was a bullish order block from 14 June on the 1-day chart.
On the other hand, the OBV in the 4-hour timeframe showed no influx of buyers and remained in a steady downtrend to highlight seller dominance.
The RSI showed neutral momentum with a reading of 46, and the market structure was bearish on the H4 chart. The $0.062 and $0.064 levels are important short-term resistances where the bears could take control of the market once more.
The spot CVD showed bulls have some hope in the coming days
Source: Coinalyze
On 11 September, DOGE bounced from $0.0597. The Open Interest climbed by close to $10 million, showing speculators were willing to bet on short-term gains.
How much are 1,10,100 DOGEs worth today?
The funding rate was positive again, and the spot CVD saw a bounce in recent hours. Yet it remained in a downtrend and was not a strong piece of evidence to suggest bulls were in control again.
However, if a bounce occurs, it is possible that it could reach as high as $0.066 before facing a reversal. This could present an attractive risk-to-reward shorting opportunity, targeting the recent lows at $0.0597.
