DOGE bulls take a step back as the breakout past $0.063 peters out
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Dogecoin saw its short-term bullish momentum and structure flipped bearish after the rejection at $0.064
- A full retracement of last week’s rally is expected as the bears continue to exert pressure
Dogecoin [DOGE] bulls initiated a rally on 28 September after a drop to a demand zone. The local resistance at $0.063 was breached, but the bears were able to force a swift retracement over the past 24 hours.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
An earlier analysis of Dogecoin from AMBCrypto dated 17 September noted that the $0.06 was a strong support level. The report highlighted a bullish Bitcoin [BTC] could see DOGE rally toward $0.064 and higher, but the DOGE bears have proved their resilience over the past two days.
Dogecoin stares at another drop to the support level as momentum shifts bearish
The Relative Strength Index (RSI) on the four-hour chart slipped below neutral 50 and showcased bearish momentum began to take hold. The market structure was bearish as well when the higher low at $0.0617 from 1 October was breached.
The Directional Movement Index (DMI) signaled a strong bearish trend in progress with the -DI (red) and the Average Directional Index (ADX) (yellow) both above the 20 mark. Taken together, the indicators and the price action underlined the strength of the sellers in recent hours.
On the one-day chart, the meme coin lacked a firm trend and has oscillated within the $0.06-$0.0635 since 10 September. Hence, buyers can enter a long position at the $0.06 level or upon a breakout past the $0.064 resistance.
Short-term bullish sentiment wanes as both BTC and DOGE witness a pullback
Dogecoin faced rejection from the $0.0642 level just a few hours before Bitcoin reversed its bullish momentum at the $28.5k mark. The pullback for BTC reinforced the bearish pressure behind altcoins, DOGE included.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
This was reflected by the drop in Open Interest (OI) on 2 October as prices dropped from the $0.064 area. The falling OI and prices showed discouraged longs and bearish sentiment. Additionally, the spot Cumulative Volume Delta (CVD) also took a downturn over the past 24 hours.