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