Dogecoin – Analyzing why DOGE traders should watch $0.196 next
The inability to defend the $0.25 range high as support was a telling sign that the bears had regained the upper hand and could drive a move to the range lows.
Key Takeaways
Dogecoin technical indicators outlined bearishness in the short term after the meme coin raced lower from the $0.25 level, but the liquidation heatmap showed there was a chance of a price bounce in the coming days.
Dogecoin [DOGE] faced rejection at the $0.285 resistance level. Previously, this level had been tested as resistance back in February.
The bearish pressure on Bitcoin [BTC] has not been high in recent days. Bitcoin has ranged between $116.7K and $122K, but the selling pressure over the past 24 hours saw it drop below the range low.
Even when BTC had been ranging, Dogecoin did not display much strength. The $0.25 level, which bulls would have hoped to defend, was easily breached. A
At the time of writing, the mid-range level at $0.196 was the next likely price target.
Technical indicators give a bearish forecast for DOGE
The range (white) for DOGE extended from $0.142 to $0.25. The 50-period Moving Average was just below the $0.196 mid-range level, and together they should serve as support.
However, the failure to defend the $0.25 as support last week was telling.
The OBV has made a new low compared to the previous week, and the RSI has dipped below neutral 50, at press time. Both indicators showed bears had the upper hand.
A drop below $0.195 would be a firm signal that the $0.142 range low was the next destination. Until then, swing traders can wait instead of rushing to open short positions.
The 2-week liquidation heatmap showed that there was some liquidity just below the $0.2 level. To the north, the $0.227 and $0.25 levels were the key magnetic zones.
The cluster of liquidity overhead meant that, even though bears have the upper hand, the price might be pulled higher in the coming days.
The case for a Dogecoin price bounce would get stronger if Bitcoin can reclaim the $116.7K level as support once again.
The 3-day liquidation heatmap for DOGE also highlighted the likelihood of a price bounce to $0.23. In the short term, a price bounce was possible and would be contingent on BTC’s performance.
For long-term investors, the false breakout last week would be a disappointment, but a drop toward the range lows should give them another chance to add to their holdings.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
