Dogecoin will likely see another rally from $0.067 as…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The strong rally from the $0.067 zone meant that a retest of the same will likely see DOGE bounce higher.
- Coinalyze data showed bullish sentiment has been weak in the past 48 hours.
Dogecoin [DOGE] saw a strong short-term rally last week that lasted from 12 July to 15 July. The bulls drove prices from $0.0636 to $0.0752 within three days, a move that measured 18.2%. However, the rejection at $0.075 showed bears weren’t yet defeated.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
While Dogecoin has trended higher since mid-June, the $0.075 region represented a strong supply zone. Above $0.075, the $0.08 and $0.09 levels of resistance will become key. In the shorter term, DOGE could present a buying opportunity soon.
The strong gains from $0.067 meant it is a bullish strongholdDogecoin was stuck beneath the resistance at $0.066 from 7 July to 12 July. Previously, from 30 June to 6 July, this same level had served as support. On 14 July, Dogecoin saw a large red candle touch the $0.06612 mark before climbing higher, reaching $0.0751 within a day.
This highlighted the $0.066-$0.068 zone as a solid demand zone that DOGE will likely see a positive reaction from on the charts. However, in recent hours the RSI began to fall below the neutral 50 mark to indicate momentum was swinging in favor of the sellers.
The CMF was below +0.05 as well, denoting a lack of substantial capital influx. The H4 market structure was also bearish after DOGE fell below the $0.0693 mark on 16 July. Yet, the demand zone highlighted presents an attractive buying opportunity.
Is your portfolio green? Check the Dogecoin Profit Calculator
Other indicators supported the idea of a lack of demand for DogecoinJust like the momentum and capital flow, the metrics from Coinalyze also highlighted bearish sentiment in the market. The Open Interest has slowly declined since 16 July alongside the price. This showed discouraged longs in the short-term.
The spot CVD has also been in a downtrend in recent days, showing that sellers have been dominant. This bearish outlook could be reinforced if Bitcoin [BTC] fell below the $29.7k mark. Alternatively, a BTC rally could swiftly shift the sentiment behind Dogecoin as well.