Analysis
Why Dogecoin [DOGE] cannot rise beyond THIS level right now
DOGE’s Open Interest soars from $800 million to $931 million as DOGE gains close to 8.5% in value.
- Dogecoin has a bullish market structure, once again.
- The lack of trading volume might dent the bullish sentiment.
Dogecoin [DOGE] was in an uptrend over the past month after breaching the $0.165 resistance and forming a series of higher lows.
However, a recent AMBCrypto report noted that the Weighted Sentiment behind the meme token was negative.
Despite the performance over the past three weeks, the public did not appear to be on board with DOGE’s bullish targets.
Technical analysis showed that this weak social sentiment had other effects on the token in the market.
The lack of hype was visible on the volume indicators
Source: DOGE/USDT on TradingView
The volume saw a slight uptick in the past week after Monday the 20th of May’s strong price performance.
However, this volume increase was very little compared to the late February rally, or even the gains or late March.
The OBV, alongside the price, formed a series of higher lows in May.
However, due to the small trading volume this month compared to previous months, it was unable to break above the significant lower highs it formed in April.
The RSI on the daily chart showed a reading of 58 and reflected strong momentum. The price was knocking at the doors of the 50% Fibonacci retracement level at $0.175 and should be able to climb above it soon.
The liquidations were few
Source: Coinalyze
The Open Interest soared from $800 million to $931 million in the past 24 hours as DOGE gained close to 8.5% in value.
This was evidence of strong bullish sentiment from speculators and suggested that they expected more gains.
The liquidations were also minimal in the past 24 hours. The volatility on the 24th saw a large amount of long positions liquidated.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
The relative lack of short liquidations as prices climbed higher indicated that market participants were not keen ongoing short.
The spot CVD also slowly climbed higher over the past two days. If the metrics can maintain their trend, Dogecoin would likely reclaim the $0.175 level as support.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
