Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Bulls sought stealth re-entry in a price imbalance (FVG) zone.
- Open interest rates improved; volumes stagnated.
Dogecoin [DOGE] bulls do not want to lose the $0.070 price zone. After dropping to $0.0751 on July 15, they quickly regrouped and retook the price zone. At the time of writing, DOGE was trading at $0.07097 and had risen above a previous range low.
Read Dogecoins [DOGE] Price prediction 2023-24
The candlestick session closed above the previous range low encouraging DOGE to look at the previous range high.
In the meantime, Bitcoin [BTC] showed a sharp rebound from the low $30,000 range, but had not yet crossed the $30.5,000 mid-range at the time of writing.
Can bulls overcome the $0.0751 hurdle?
Source: DOGE/USDT on TradingView
DOGE entered a range formation within $0.070 – $0.075 in May, but later triggered a bearish breakout in early June. However, it has recovered most of the losses incurred since mid-June.
DOGE, in particular, made higher highs and higher lows since mid-June, allowing bulls to gain an edge. While the recovery faltered at the previous range high of $0.0751, bulls re-entered the price imbalance and FVG (fair value gap) of $0.0694 – $0.0655 (cyan).
In most cases, the price always hits the FVG before moving in its previous direction. So far, DOGE has seen two rebounds from the FVG. In addition, the FVG corresponds to the rising trendline support.
Thus, a price rejection at the previous range-high of $0.0751 could ease into the above confluence area. As such, the confluence area is critical for bulls as it could provide a new buying opportunity.
Alternatively, a candlestick session close to the previous high of $0.0751 could further confirm bullish intent and likely retest at $0.081.
Meanwhile, the RSI recovered from the mid-level, pointing to improved buying pressure. But CMF (Chaikin Money Flow) moved sideways while ADX (Average Directional Index) was below 20, indicating stagnant capital inflows and a lack of a strong trend.
How many Worth 1,10,100 DOGEs today?
Open interest rates improved
Source: Coinalyse
On Coinalyze’s 1-hour chart, Open Interest (OI) rates, which track the number of contracts opened on the futures market, have improved over the past few days. The OI has reached higher lows since June 13, underlining recent future market demand.
But the CVD (Cumulative Volume Delta) stagnated after a recent positive slope, indicating easing buying volumes. It could make crossing above $0.0751 more difficult. The range-low/FVG/rising trendline confluency area could provide a reprieve if that’s the case.
