Analysis
How Dogecoin [DOGE] buyers can leverage this strategy to curtail their risk
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
- After breaking out from its descending channel, Dogecoin strived to reclaim its bullish edge.
- The funding rates unveiled a bullish edge but marked a declining trend.
Last week’s rebound from the $0.054 baseline set the foundation for Dogecoin’s [DOGE] efforts in challenging the 20/50 EMA barriers. While attempting to secure a spot above these barriers, the buyers heightened their pressure in the last few sessions.
Here’s AMBCrypto’s price prediction for Dogecoin [DOGE] for 2023-24
Meanwhile, the patterned breakout led DOGE to enter into a rather over-extended low volatility phase. At press time, DOGE was trading at $0.0597.
DOGE eyed at multiple resistances, will the buyers dwindle?
Source: TradingView, DOGE/USD
The recent reversal from the lower trendline of the down channel aided the buyers in flipping the $0.0585-$0.0587 resistance range to support. In the meantime, the $0.0607 ceiling posed solid recovery barriers over the last ten days.
DOGE’s down-channel breakout in the four-hour timeframe put the meme-coin in a better position to defy the selling tendencies of its near-term EMAs.
A sustained sway above the 50 EMA could aid the buyers in provoking a near-term rally. But the bears could likely constrict the price in the $0.06 zone given the confluence of 200 EMA, trendline, and horizontal resistances.
Any immediate pulldowns could continue to find reliable rebounding grounds from the $0.058 support region.
The Relative Strength Index (RSI) found a close above the midline to depict a slight preference for the buyers. Additionally, the On-Balance-Volumes’s (OBV) higher troughs over the last few days bullishly diverged with the price action.
Source: Coinglass
Over the last few hours, DOGE’s funding rate on most exchanges still stood positive but showed a slightly decreasing trend. Should this trend continue, it would depict a decreasing bullish sentiment in the futures market.
Moreover, an analysis of the long/short ratio revealed a slight edge for the sellers over the last 12 hours. The buyers should keep a close watch on the movements of the funding rates alongside the long/short ratio to gauge the wider sentiment.
Finally, the dog-themed coin shared a 61% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement would complement these technical factors.
