Dogecoin sees an ugly rejection at resistance, are the bears back?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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- Losses of 10% within two hours shatter the bullish structure.
- Capital flow was firmly directed out of the market.
Dogecoin had been in a steady uptrend over the past week. From 12 April to 18 April, DOGE bulls managed to defend the $0.08 support zone and steadily drive prices higher to reach a local high at $0.095.
Realistic or not, here’s DOGE’s market cap in BTC terms
This move amounted to gains of 18.2% within a week but a good chunk of them was erased within hours on Wednesday. Bitcoin would need to defend the $28.8k support in the coming hours to shore up bullish confidence.
The swift descent had a huge volume, but can bulls hope for a recovery?
The $0.093 resistance had been a tough opponent for the buyers in recent days. Their attempts to drive the DOGE rally higher were consistently halted. The RSI hovered between the 50 and 60 values over the past three days, showing some bullish momentum.
This was swiftly undone in the hours preceding press time. The CMF had been hovering around the-0.05 mark over the past 24 hours. It slumped swiftly to -0.13 before bouncing to -0.08. Overall it showed significant capital flow out of the market.
How much are 1, 10, or 100 DOGE worth today?
The price fell below the $0.085 level but was quick to bounce to $0.0875 at press time. The ideal scenario for the bulls is a push above the $0.088 resistance level.
“$6 million rekt,” says Coinglass, with bulls being the vast majority
The sudden drop in prices came as a surprise, and millions of dollars of long positions were caught offside. Coinglass data showed $5.94 million worth of positions were long, of the $6.06 million liquidated in the four hours before press time.
The fall in prices was accompanied by a massive decline of close to $50 million in Open Interest.
This indicated short-term sentiment was firmly in favor of the sellers, which was made worse by the findings from the CVD. The spot CVD chart showed selling pressure has been dominant since 14 April.