DOGE tumbles 15% in 2 days: Bears’ time to shine?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The higher and lower timeframe trend of Dogecoin pointed downward.
- A 5% bounce followed by another move southward measuring more than 10%, likely based on price action.
Dogecoin [DOGE] has shed double digits in percentage points over the past two days. An earlier report noted that bearish pressure was dominant in the market. With Bitcoin [BTC] facing rejection at $29.6k, DOGE losses have rapidly risen as well.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
A higher timeframe demand zone was flipped to supply. The bears looked likely to force further losses, although a bounce toward $0.072 cannot be discounted.
The $0.07 level was vital to the DOGE bulls’ operationsSince early May, the $0.07-$0.075 region has been significant. When Dogecoin saw a rally from $0.064 in July, the $0.07 area offered substantial resistance. Hence, the inability of the bulls to defend this zone in August highlighted the strength of the sellers.
The RSI reached gave a reading of 12 on the 4-hour chart when prices reached $0.066 just a few hours before press time. This signaled intense downward momentum. The OBV also posted a large decline over the past three days.
The market structure on the 4-hour chart and the 1-day chart was bearish. This showed DOGE traders can look to short the asset in anticipation of the downtrend continuing. The H4 chart showed a large fair value gap (white) in the $0.07145-$0.07334 region.
A move into this band could be followed by another drop in prices.
Bearish sentiment continued to prevail in the lower timeframes
How much are 1, 10, or 100 DOGE worth today?
The Open Interest was in a steady downtrend as Dogecoin fell lower on the chart. This showed discouraged longs and bearish sentiment. Speculators were not ready to bid for the meme coin. The spot CVD was also in decline.
This showed heavy selling pressure in Dogecoin since 13 August. A recovery was not yet in sight on the lower timeframes. The $0.063 and $0.066 support levels could provide a bounce.