Dogecoin’s sentiment hit 4-month high; fell sharply afterward – Can bulls prevail?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• DOGE soared after sentiment reached its October high.
• However, the sentiment fell sharply afterward, prompting an over 7% plunge. 

Dogecoin [DOGE] received a double boost this week. Elon Musk’s tweet about a dog as the new Twitter CEO boosted the meme coin’s social engagement. In addition, Bitcoin’s [BTC] sharp rally and reclaim of the $25K further pushed DOGE to $0.09202. 

So much better than that other guy!

— Elon Musk (@elonmusk) February 15, 2023

BTC later lost hold of $25K and broke below $24K, setting DOGE into a sharp correction. However, bulls found steady support. 

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

The $0.08484 stopped the plunge – Can bulls gain leverage

Source: DOGE/USDT on TradingView

DOGE’s short-term plunge was kept in check by the $0.08484 support level. It allowed the bulls to rally and reclaim the 7% lost in the drop.

But the recovery faced an obstacle at $0.08654. Therefore, DOGE could break below the 50% Fib level and retest the immediate support level or 38.2% Fib level before bouncing back to target the 78.6% Fib level. 

So, short-term bears could profit at $0.08484 or the 38.2% Fib level of $0.8418 if DOGE fails to clear the $0.08654 hurdle. Short-sellers should watch for a close below the 50% Fib level and retest to confirm the downtrend before making moves. 

On the other hand, near-term bulls could look for gains at 50%, 61.8%, or 78.6% Fib levels depending on investors’ risk appetite.

However, the ideal buying opportunity for targeting the above levels is at $0.08484 or the 38.2% Fib level. These levels will offer a great discount alongside an impressive risk-to-reward ratio if DOGE recovers. 

Read Dogecoin’s [DOGE] Price Prediction 2023-24

The RSI showed a neutral structure, but the CMF leaned towards the bears as it moved southwards. 

DOGE’s sentiment hit a 4-month high before falling sharply

Source: Santiment

According to Santiment, DOGE saw a rise in weighted sentiment after Elon’s tweet. The positive elevation reached the October 2022 level. Notably, DOGE hit $0.136 with the same positive elevation in sentiment in October. 

However, yesterday’s sentiment declined significantly after BTC lost the $25K and $24K psychological price levels. If BTC breaks below the $23 and other lower support levels, the DOGE’s sentiment could drop further and give bears leverage to push DOGE towards the 38.2% Fib level. 

Nevertheless, the Mean Coin Age exhibited a rising slope, indicating a bullish momentum that could push DOGE towards upper resistance levels.

Mean Coin Age measures how long a coin stays at its current address. The rising slope shows a wide-accumulation trend – a bullish signal which could boost DOGE’s recovery. But a strong recovery may happen if BTC reclaims $24K and $25K price levels.