Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The strong rally from the $0.067 zone meant that a retest of the same DOGE is likely to bounce higher.
- Coinalyze data showed that bullish sentiment was weak over the past 48 hours.
Dogecoin [DOGE] saw a strong short-term rally last week that lasted from July 12 to July 15. The bulls drove prices from $0.0636 to $0.0752 within three days, a move of 18.2%. However, the $0.075 rejection showed that the bears were not defeated yet.
Realistic or not, here is DOGE’s market cap in terms of BTC
While Dogecoin has trended higher since mid-June, the $0.075 region represented a strong supply zone. Above $0.075, the $0.08 and $0.09 resistance levels become key. In the shorter term, DOGE could soon offer a buying opportunity.
The strong gains from $0.067 meant it is a bullish stronghold
![Dogecoin [DOGE] will probably see another rally from $0.067, here's why](https://statics.ambcrypto.com/wp-content/uploads/2023/07/PP-1-DOGE-price.png)
Source: DOGE/USDT on TradingView
Dogecoin was stuck below resistance at $0.066 from July 7 to July 12. Previously, from June 30 to July 6, the same level served as support. On July 14, Dogecoin saw a big red candle hit the $0.06612 mark before climbing higher, reaching $0.0751 within a day.
This highlighted the $0.066-$0.068 zone as a solid demand zone that DOGE is likely to see a positive response from on the charts. In recent hours, however, the RSI has begun to drop below the neutral 50, indicating that momentum was in the sellers’ favor.
The CMF was also below +0.05, indicating a lack of substantial capital inflows. The H4 market structure was also bearish after DOGE dipped below the $0.0693 mark on July 16. Still, the highlighted demand zone offers an attractive buying opportunity.
Is your wallet green? Check the Dogecoin profit calculator
Other indicators supported the idea of a lack of demand for Dogecoin
![Dogecoin [DOGE] will probably see another rally from $0.067, here's why](https://statics.ambcrypto.com/wp-content/uploads/2023/07/PP-1-DOGE-coinalyze.png)
Source: Coin analysis
Like the momentum and capital flow, Coinalyze’s stats also highlighted bearish sentiment in the market. Since July 16, the Open Rate has slowly fallen along with the price. This showed discouraged longs in the short term.
The spot CVD has also been in a downward trend for the past few days, showing that sellers were dominant. This bearish outlook could be strengthened if Bitcoin [BTC] fell below the $29.7k mark. Alternatively, a BTC rally could quickly change the sentiment behind Dogecoin as well.