Connect with us


Should Dogecoin buyers wait for a breakout past this psychological level before bidding?



Dogecoin has a bullish longer-term bias despite imminent resistance
Source: Pixabay

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

  • The market structure of Dogecoin was bullish.
  • The lower timeframe analysis showed $0.085-$0.09 to be a support zone.

Bitcoin [BTC] continued to trade beneath the $23k mark. While it hasn’t retested the $22.3k support zone, it hasn’t broken above $24.2k either. This phase of consolidation has given many altcoins room to make gains.

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

Dogecoin [DOGE] has made steady gains in the past two weeks. It formed a series of higher lows and has a bullish market structure on the daily timeframe. Yet, the buyers have faced stern resistance near the $0.1 mark.

The bearish order block has resisted DOGE bulls’ attempts since late January

Dogecoin has a bullish longer-term bias despite imminent resistance

Source: DOGE/USDT on TradingView

Just beneath the $0.1 psychologically significant level lay a bearish order block on the daily timeframe from December 2022. In the past week, the price could not force itself above $0.1, which underlined the fact that sellers dominated this area.

The RSI stood above neutral 50 to indicate momentum was bullish. The DMI also showed a strong uptrend in progress, with the ADX (yellow) and the +DI (green) both above the 20 mark. Additionally, the daily market structure was bullish, and DOGE has formed a series of higher lows since January.

How much is 1, 10, 100 DOGE worth?

In particular, the move above the $0.079 level of resistance and its subsequent retest was an important sign of bullish strength. Similarly, a breakout past $0.1 will also be a strong indication of bullish dominance. Until then, some consolidation and a slow grind upward were likely. A move back beneath $0.082 and $0.078 will flip the bias back to bearish.

30-day MVRV descends, but sentiment also dipped to negative territory

Dogecoin has a bullish longer-term bias despite imminent resistance

Source: Santiment

The 30-day MVRV pushed toward a three-month high. Before it could reach this level, the metric receded. At the same time, DOGE saw a pullback from $0.098. This suggested that near-term holders have booked profits. Despite this selling pressure, DOGE was yet to break beneath the lower timeframe support at $0.088-$0.09.

The age-consumed metric did not see a sharp spike recently, nor did the 90-day dormant circulation. If they had, it could indicate a wave of selling around the corner.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.

Please select your Email Preferences.

Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.