Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Waning volume saw DOGE’s bullish rally halted at key resistance level.
- Negative MVRV long/short difference favored sellers in the short term.
The bullish breakout by Dogecoin [DOGE] from its sideways movement faltered at the $0.0700 resistance level. After zooming past its March lows, the price rejection at the key resistance level stalled bullish momentum.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
While DOGE has benefitted from the increase in crypto market volume occasioned by Bitcoin’s [BTC] ascent into the $30k price zone, it seems the meme factor isn’t enough for a sustained price surge.
Price rejection could trigger another sideways streak for DOGE
Source: DOGE/USDT on Trading View
DOGE’s last significant move on 10 June was occasioned by a sharp spike in daily trading volume. With volume slowing down again, DOGE could be stuck in a range between the $0.0700 resistance and $0.0632 support levels.
The bullish breakout on 21 June saw DOGE flip the $0.0632 level to support. While DOGE rallied, the RSI didn’t portray sufficient demand behind the move, as it quickly dipped after entering the overbought zone.
As of press time, the RSI stood at 42. This highlighted the existence of constant selling pressure, as seen on the higher timeframes.
Furthermore, the MACD’s display of a bearish crossover on the four-hour timeframe signaled growing confidence among sellers.
If the bullish defense of the $0.0632 support level holds, buyers can make another attempt to flip the $0.0700 resistance level. Else, sellers could take over to dip below the $0.0632 support with $0.0582 serving as the short-term target.
Declining social dominance isn’t good news for buyers
Source: Santiment
DOGE’s lack of a real-world utility so far makes its growth purely speculative. As such, it tends to achieve significant price movements when it is gaining traction via social mentions. This was evidenced on 4 April when DOGE hit its year-high of $0.10, as its social dominance metric soared.
The steep decline in this metric over the past two months has served as a mitigator of a sustained bullish rally. With a social dominance of just 0.79%, as of press time, DOGE is barely getting mentioned in the pool of most talked about cryptocurrencies online.
How much are 1,10,100 DOGEs worth today?
Also, the Market Value to Realized Value (MVRV) long/short difference stood at -136.8%. This suggested that short-term holders were going to make more profit than long-term holders if they sell at the press time price.
This could usher in more selling pressure if short-term holders decide to cash in on their gains.
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