- During the July 4 trading session, DOGE switched hands at a month high.
- The Bollinger Bands and Chaikin Money Flow indicators pointed to a potential price downside.
For the first time in almost four weeks, Dogecoin [DOGE] recovered the price of $0.07 during the intraday trading session on July 4, data from Sanitation revealed.
🐶 #Dogecoin is on a mini run and regains the $0.07 level for the first time in 4 weeks. The biggest $DOGE shorting of 2023 happened 6 days ago, likely contributing to the pump. Interestingly, the percentage of discussions and interest have remained low. https://t.co/HZ9QM0hlI5 pic.twitter.com/aze07RbkWb
— Santiment (@santimentfeed) July 4, 2023
Read Dogecoins [DOGE] Price forecast 2023-2024
According to the on-chain data provider, the intraday surge in the value of the memecoin came after several short positions opened towards the end of last week. For example, on leading exchange Binance, DOGE’s funding rates hit a low of 0.0323% on June 29, indicating how many traders counted on DOGE’s price to drop.
With an increase in DOGE’s trading volume and corresponding growth in price over the past 24 hours, data from Mint glass revealed that $808.01k short positions were liquidated during that period.
If you want to avoid losses…
While short traders placed bets against DOGE on June 29, the rest of the market intensified its accumulation. This was revealed by a review of DOGE’s key momentum indicators. The relative strength index of the coin showed an upward trend from June 29 to 57.15 at the time of writing. Similarly, DOGE’s Money Flow Index was seen near overbought territory at 70.53.
Furthermore, DOGE’s On-balance volume is up nearly 2% over the past week. When a coin’s OBV grows like this, it suggests that the volume of buying pressure is increasing. This growth in demand for the coin often leads to upward price movements, as is the case here.
Confirming that DOGE’s current high was recently reached, the Aroon Up Line (orange) yielded a value of 71.43% at the time of writing. When an asset’s Aroon Up line is close to 100, it indicates that the uptrend is strong. And that the most recent high was clocked relatively recently.
Some indicators tell a different story
The above indicators suggested that the leading memecoin was well positioned for a sustained price rally. However, a closer look at the Bollinger Bands and Chaikin Money Flow revealed that a price correction may be underway.
At the time of writing, DOGE’s price was above the upper band of its BB indicator. When an asset’s price is found this way, it means that the asset may be overbought or going through a period of high volatility.
How much are 1,10,100 DOGEs worth today?
It is taken by traders and investors as an indication that the asset may be overextended and selling pressure may be building. This can lead to a price drop or a return to the midband.
As for the CMF, it has been on a downward trend despite the growth in DOGE’s value over the past week. This created a bearish divergence that often precedes a price drop.
Source: DOGE/USDT on trade view
