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Dogecoin reclaims its January level- Are short-sellers subdued? 

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DOGE reclaims its January level- Are short-sellers subdued? 

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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

  • The 4-hour chart was bullish at press time. 
  • Bulls had slight hope based on the bullish pendant pattern.

Dogecoin [DOGE] saw a sharp rally after Twitter replaced its typical blue bird logo with an image of DOGE. The meme coin rallied 21% on 3 April but consolidated in the past few hours, hovering below $0.10000.

The overall price action chalked a bullish pendant pattern which could tip bulls for more upward traction. 

Read Dogecoin [DOGE] price prediction 2023-24

On the other hand, the king coin, Bitcoin [BTC], continued with its sideways structure of $26.9K – $28.8K. The range trading could slow the strong uptrend DOGE witnessed in the past few hours. 

A bullish pendant pattern – Can bulls sustain the uptrend?

Source: DOGE/USDT on TradingView

DOGE saw a sluggish recovery from mid-March, crawling from around $0.06500. But the Twitter move boosted the recovery, pushing DOGE above the bearish order block of $0.0850. But it faced rejection at $0.10500, chalking a bullish pendant pattern. 

Near-term bulls could push DOGE to $0.011247 if the $0.09294 support is defended. A key obstacle for near-term bulls to watch out for is the $0.10500. However, a breach and close below $0.09294 would undermine more upward momentum. 

Such a downswing could attract more sell pressure and devalue DOGE to $0.08904 or $0.089496. The 50 MA could likely check the downward momentum and offer bulls a reprieve. 

Meanwhile, the RSI retreated from the overbought zone at press time, showing buying pressure decreased slightly. On the other hand, the Directional Movement Index (DMI)  showed +DMI was above -DMI, and the Average Directional Index (ADX), yellow line, surged upwards, showing the uptrend was still strong at press time. 

The long/short ratio leaned toward sellers

Source: Coinglass

According to Coinglass, the exchange long/short ratio was 53% (shorts) against 48% for longs at the time of writing. It shows a significant number of investors were slightly pessimistic about the short-term prospects of the meme coin. 

How much are 1,10,100 DOGEs worth today?

However, DOGE’s open interest rate continued to rise at press time. It shows a bullish sentiment in the futures market which could make bulls hopeful. But the conflicting metrics call for tracking of BTC price action for better trade moves. 

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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