Dogecoin [DOGE] bulls open the floodgates: Can March losses be reversed
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- The H4 market structure was strongly bullish.
- The trading volume saw an increase during the shift in structure.
Measured from the swing low at $0.0625, Dogecoin [DOGE] has made gains of close to 25% within the past five days. The sentiment across the crypto sphere was bullish following Bitcoin’s [BTC] sharp breakout past the $22k region on Monday.
Read Dogecoin’s [DOGE] Price Prediction 2023-24
Bitcoin’s surge past $25.2k resistance on Tuesday meant it, too, had a strong bullish bias going forward. Dogecoin bulls might have to be wary- such a strong pump could see a large retracement before the next leg.
Two lower highs were breached and showed a shift in bias
The bearish breaker on the daily timeframe was breached in the opposite direction as Dogecoin reversed in dramatic fashion. The trading volume was high on the way up for DOGE, and the indicators also flashed bullish signals.
The Awesome Oscillator was above the zero line and climbing, and showed intense bullish momentum. The Directional Movement Index also showed an uptrend in progress. Over the past few days, the -DI (red) was forced to retreat beneath the 20 mark and the +DI replaced it. With the ADX (yellow) also above 20, they showed a significant uptrend on the 4-hour chart.
The market structure also corroborated with this finding. The price has breached two of the recent lower highs and flipped the previous bearish structure to bullish. The $0.073 level of support was retested almost perfectly before DOGE climbed higher yet again.
The next area of resistance was at $0.08. This was an area that had served as support since mid-January. Hence, it was likely to be full of sellers. If this area was retested as support in the coming days, it could offer a buying opportunity.
The futures market showed capital flowing in alongside Dogecoin gains
Realistic or nor, here’s DOGE’s market cap in BTC’s terms
The 15-minute chart showed periods of consolidation and expansion for Dogecoin on the lower timeframes over the past few days. Each pullback on the price chart saw the Open Interest decline.
Similarly, each move upward for DOGE was accompanied by a surge in OI. Taken together, it showed bullish sentiment was strong in the market.