Assessing Dogecoin traders’ next steps if memecoin’s price breaks THIS way
  • After dropping below the $0.11 threshold, Dogecoin approached a critical support range.
  • The decline in DOGE’s open interest outweighs the daily losses, suggesting that the bearish momentum is weakening.

Dogecoin [DOGE] The reversal from the $0.22 resistance level in May this year set the stage for the bears to take control of the market. Amid this bear market, the meme coin dipped below the 20-day and 50-day EMAs, resulting in a series of red candlesticks.

As we predicted, Previous articleDOGE further succumbed to bearish pressure and fell below the critical $0.12 support level. A potential reversal from the immediate support range of $0.096–$0.01 could stop the bleeding as bulls try to make a comeback.

At the time of writing, DOGE was trading at around $0.101.

Dogecoin Bears Continue to Rise put pressure?

DOGE/USDT. Source: TradingView

Bearish pressure has been pretty dominant ever since the price reversed from the resistance at $0.22. This bearish pressure has caused the meme coin to lose over 54% of its value in the past three months.

During this decline, the meme coin painted a classic descending triangle structure on the daily chart. After testing the $0.129 level for more than three months, the bears finally triggered a series of red candlesticks below that base line, confirming the breakout of the bearish pattern.

Bulls retested this level soon after the breakout but the 20 EMA resisted the upside as the altcoin continued its downtrend and approached the crucial support range of $0.01–0.096 at the time of writing.

Going forward, this range will be crucial to stem the immediate bleeding. In fact, analysis of the volume profile of the visible range reveals that the current price is on the brink of a relatively high liquidity zone. This means that the bears are likely to encounter resistance from the bulls and trigger a further decline.

As a result, a reversal from the current support range can help the bulls to retest the $0.11–$0.12 range. If the price surges above the 20 EMA, it can enter the low volatility zone.

Conversely, a break below the immediate support range could expose the meme coin to a fairly prolonged decline towards the $0.08 zone.

The Relative Strength Index (RSI) continues to trade in oversold territory at the time of writing. A possible reversal from the current position would support a bullish reversal bias.

Open interest decreased

Source: Coinglass

According to data from Coinglass, DOGE’s open interest has fallen by nearly 12% over the past 24 hours, although price fluctuations over that time have been down around 4%, suggesting a lack of confidence and uncertainty among traders.

Such scenarios often signal either a potential reversal or a consolidation phase, where the market may stabilize before making its next move.

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