Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- DOGE remained bearish on the 12-hour time frame.
- Sellers dominated the long/short ratio at 52.73%.
Dogecoin [DOGE] experienced a significant bullish rally in early April that saw the price rise to $0.1016. However, it declined bearishly after that, losing more than 30% of its value. This left DOGE trading at $0.0736, as of going to press.
Read Dogecoins [DOGE] Price Forecast 2023-24
With Bitcoin [BTC] by continuing to trade sideways between $26k and $27k, selling pressure could sink DOGE lower.
Will the $0.0700 Support Hold?
Source: DOGE/USDT on trade view
DOGE’s surge in early April was quickly contained by sellers at the $0.1016 resistance level. This pushed DOGE to the $0.0805 support level with bulls rallying to hit $0.0934 short. The bearish order block and resistance at $0.0934 ushered in another wave of selling pressure that pushed DOGE to its lowest price level since March.
With price trading at the $0.0700 support level over a 10-day span, bulls have temporarily halted bearish momentum. However, they have failed to continue from the support level for more gains. This suggested that bears could force another downward move, especially if Bitcoin drops to the $25k level.
Technical indicators on the four-hour chart tended toward sellers. The Chaikin Money Flow (CMF) dipped below zero and stood at -0.10 at the time of writing. This indicated a continued outflow for DOGE. On Balance Volume (OBV) also remained flat, indicating limited demand for DOGE.
An increase in volume could fuel a bullish rally from the $0.0700 support level. Conversely, retesting the support level could cause DOGE to experience more aggressive selling. This could mean that Bears are targeting the next support level at $0.0632.
Open interest rates continued to fall
Source: Coinalyse
Realistic or not, here is DOGE’s market cap in terms of BTC
Dates from Coin analysis showed that Open Interest (OI) rates were $332,163 million on May 17, but fell to $317,634 million at the time of going to press. The outflow signaled bearish short-term sentiment in the futures market.
In addition, the exchange’s long/short ratio showed that shorts had the upper hand, dominating the long/short ratio at 52.73%. With sellers firmly in control, a near-term bullish reversal for DOGE may depend on BTC price action.
Source: Mint glass
