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Dogecoin: Is DOGE ready to escape this compact range?

2min Read

DOGE bulls have found the $0.0700 hurdle impossible to surmount, as selling pressure rises.

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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.

  • Selling pressure could see DOGE breakout of the compact range.
  • Lack of demand in the futures market sees Spot CVD remain in perpetual decline. 

Dogecoin’s [DOGE] traded within a compact price range over the past three weeks. Price oscillated between the range low of $0.0632 and the range high of $0.0700.

However, a range breakout looks imminent, especially with Bitcoin [BTC] experiencing a price correction. DOGE posted losses of 2.1% over the past 24 hours. This suggested that the breakout could be a bearish one.


Realistic or not, here’s DOGE’s market cap in BTC terms


Sellers poised to break below a key support level

Dogecoin price chart on dark background with green and red bars

Source: DOGE/USDT on Trading View

DOGE’s market structure on the higher and lower timeframes has been bearish since early April. The break of the key $0.0632 support level on 10 June saw the price sink to a new year-low. However, bulls recovered slowly to stem the selling pressure.

Despite the bullish rebound, buyers have found momentum hard to come by, due to the selling pressure at the $0.0700 resistance level. This has kept DOGE stuck in a compact price range, although the on-chart indicators hinted at a possible bearish breakout.

The Relative Strength Index (RSI) has been under the neutral 50, since 5 July. As of press time, it was on a dip, highlighting the waning buying pressure. The On-Balance Volume (OBV) was largely flat, which could be significant for bears.

A successful bearish breakout will see bears target the October 2022 low of $0.0582. Alternatively, if BTC rallies again above $31k, bulls can spring a surprise rally from the current support level.

Open Interest hinted at bearish sentiment in the market

DOGE coin futures market data

Source: Coinalyze

Data from Coinalyze showed that the Open Interest has been on a downtrend after a sharp drop on 5 July. This showed confluence with the RSI which has also remained under the neutral 50 over the same period.


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


The aggregated Spot Cumulative Volume Delta (CVD) also remained in a massive decline amidst fluctuations in the funding rate. This hinted at market sentiment titling in favor of a bearish breakout for DOGE.

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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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