Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Market structure was bearish and momentum was neutral at press time.
- Buying pressure suggested short-term recovery was possible, but sentiment was in favor of sellers.
Bitcoin made a U-turn just below the $30,000 round number resistance on April 26, dropping 6.88% within an hour of this rejection. The lower timeframe was bullish behind many altcoins like Dogecoin before the drop.
Read Dogecoins [DOGE] Price Forecast 2023-24
The meme coin was stuck below the $0.08 resistance for the past week, but a breakout encouraged the bulls. Coinglass data showed DOGE bulls suffered during the recent malaise.
Liquidity has been chased in both directions, making trading conditions precarious
Source: DOGE/USDT on TradingView
In the past few hours DOGE pushed above its recent low at $0.081 to reach $0.0835 before immediately crashing to reach $0.0748. Both bulls and bears were hurt by these developments, and DOGE’s jump to the $0.08 resistance again meant that traders should be cautious.
The bullish argument was based on the steady rise in the OBV over the past three days. This showed that the buying volume was greater than the selling volume, and another upward move was likely after the recent flush.
On the other side of this argument was DOGE’s momentum and market structure. The drop below $0.0775 meant that the structure was bearish and the RSI was at 48, indicating that an uptrend had not yet started.
Realistic or not, here is DOGE’s market cap in BTC terms
Bitcoin could pave the way for the altcoin market. BTC has flipped 27.7k to support, with the recent drop being a retest of said support. Hence, aggressive bulls may be looking at a Dogecoin breakout above $0.081, provided BTC goes back above $29,000.
Market sentiment leaned down after the sudden price drop
Source: Coin analysis
The funding rate almost dipped into negative territory after intense selling pressure late Wednesday (April 26). Since then, the funding rate has recovered. However, market sentiment remained in favor of the bears.
Open interest has risen slowly over the past two days, but has fallen sharply in recent hours. This discouraged bulls and, combined with the market structure, suggested that the lower time frame outlook was bearish for DOGE.
