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Analysis

DOGE: Bulls gain upper hand after midweek lows

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Dogecoin trended downward in April after falling below $0.082, but exhibited rangebound price action in May. This was likely to continue in June, with DOGE facing a lack of substantial buying pressure.
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DOGE: Bullish momentum stirs after midweek lows
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Bitcoin [BTC], along with the rest of the crypto market, had a bright start to the week last Monday (29 May) but posted losses in the following days. Bitcoin fell by close to 6% while Dogecoin [DOGE] experienced a 4.7% drop to reach $0.0705 on Wednesday, 31 May.

Thereafter, there was some demand behind the meme coin and prices rose to $0.0733. The higher timeframe trend has been bearish over the past six weeks after the rejection at $0.095.

A range formation but markets remained indecisive

Here's what Dogecoin bulls can expect next week after a 4% gain from midweek lows

Source: DOGE/USDT on TradingView

Weekend price actions rarely possess strong trends, and the trading volumes are likely to be lower than weekdays as well. This was true for DOGE this weekend. Even though the RSI was above neutral 50, the market structure was not bullish.

Dogecoin has traded within a range (yellow) from May. This range extended from $0.069 to $0.075. Additionally, there was short-term resistance at the $0.074 mark which the DOGE bulls have not overcome since 19 May.

Over the past week, the A/D indicator climbed higher to show a rise in buying pressure. But this resulted from a flurry of buying on Friday, 2 June, that pushed prices above the $0.072 level.

This was an important resistance, as it represented the mid-range value. Overall, Dogecoin lacked bullish momentum and is expected to see a bearish reversal around the $0.074-$0.075 resistance zone.

Bullish sentiment was building up in the past two days

Here's what Dogecoin bulls can expect next week after a 4% gain from midweek lows

Source: Coinalyze

While Dogecoin lacked significant demand over the past two weeks, there was a minor uptick in buying pressure in June. Despite the repeated rejection at the $0.074 level, the bulls appeared ready to take another shot at it with renewed vigor.

Realistic or not, here’s Dogecoin’s market cap in BTC’s terms

From Thursday, 1 June, the Open Interest has climbed steadily higher. According to Coinalyze, it amounted to an increase of $18 million worth of contracts. Meanwhile DOGE climbed by close to 3%. Together, it indicated bullish sentiment in the market.

However, the spot CVD, which had been in a downtrend in late May, saw only a minor bounce on Friday and subsequently was flat.

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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