Dogecoin: Is DOGE ready to escape this compact range?
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
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
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.