Dogecoin retains bullish structure; buying opportunities are…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The uptrend is on the higher timeframe, with a pullback toward $0.07 still possible.
- DOGE’s April local highs are valid take-profit targets.
Dogecoin [DOGE] sits atop the meme coin market with the largest market cap, according to CoinMarketCap. It had a healthy lead over Shiba Inu [SHIB]. The gap widened over the past ten days as DOGE posted strong gains on the price chart, while SHIB remained relatively inert.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
Bitcoin [BTC] has a bullish bias on the higher timeframe charts as well, but its recent price action suggested losses could be imminent. If this were to happen, DOGE would likely see a drop. Should buyers look to Dogecoin as one of the potential good performers in the coming months?
A quick move past the $0.07 resistance showed bullish intentThe bullish break in structure came on 13 July when DOGE climbed past a lower high at $0.07. Since then, Dogecoin has also posted higher lows on the chart, showing an uptrend in progress. The RSI backed this finding with a reading of 63, another sign of strong bullish momentum.
The rally was supported by genuine demand which was reflected on the OBV with its sharp upturn over the past ten days. Therefore, further gains were likely for Dogecoin. Yet, a retracement toward the $0.0735-$0.075 could occur if Bitcoin tumbled beneath the $29k mark.
On the other hand, the $0.0768 level had served as resistance on 24 July but was retested as support on 26 July, which offered a riskier buying opportunity with a much tighter stop-loss.
To the north, previous highs marked in red such as the $0.0836 and $0.095 levels can be used to book profits.
Dogecoin sellers could be out in force soon
Is your portfolio green? Check out the Dogecoin Profit Calculator
Santiment’s data revealed positive news for the buyers. The 90-day mean coin age has been in a strong uptrend since mid-June. This indicated a network-wide accumulation of the meme coin. The funding rate was also positive.
However, the MVRV ratio has skyrocketed over the past month. It was a signal that the asset could be overvalued, and with such high readings it was likely that selling pressure could undo all the recent gains.