DOGE consolidates at range low — Is a bearish breakout imminent?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- DOGE’s price action moved sideways at the range low, hinting at a bearish breakout.
- Sellers in the derivatives market positioned themselves with shorts holding a 52.66% advantage.
Dogecoin [DOGE] extended its range formation, as the price consolidated above the range low. DOGE has been stuck between the 23.6% and 38.2% Fib levels since 18 August with neither bears nor bulls able to break out.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
However, DOGE’s price action in September has primarily been bearish after the recent rejection of the bullish push at $0.0664.
Meanwhile, the crypto market continued to experience sideways movement occasioned by Bitcoin [BTC] oscillating between $25.6k and $26.4k.
Are bears gaining the upper hand?
A look at DOGE’s historic price action revealed a tendency for the memecoin to trade sideways for a period of time before a large upward or downward move. Thus, its current price action looks to follow the same pattern.
At press time, bears looked to be strengthening their position with the Relative Strength Index (RSI) staying firmly under the neutral 50. This highlighted a lack of buying pressure. Coupled with the On Balance Volume (OBV) declining by over 2 billion within the past 48 hours, it hinted at an imminent bearish breakout.
If bears are victorious over the coming days, DOGE could sink to the $0.055 price level (0% Fib). This price level represents year lows for DOGE in June and August.
On the flip side, a bullish revival in the market along with sufficient DOGE speculation could initiate a rebound. Buyers can target the $0.066 to $0.07 price areas.
Speculators leaned bearish
Traders in the futures market are aligned with the growing strength of bears by increasing their short positions. This was according to data by Coinglass. Shorts held a 52.66% share of the open contracts, as of the time of writing.
How much are 1,10,100 DOGEs worth today?
This represented a $5 million difference between long and short positions. This showed that speculators were actively betting on DOGE sinking lower.