Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Bullish recovery rejected at new resistance level.
- Due to a lack of conviction in the futures market, DOGE could experience a move in the range in the near term.
Dogecoins [DOGE] the recovery faltered at the $0.06 resistance level. This happened after a sell-off pushed the price below a critical support level for buyers on October 9.
Read Dogecoins [DOGE] Price forecast 2023-24
A technical analysis of Dogecoin by AMBCrypto on October 11 found that the break of this support zone provided a good short position for sellers in the market. Although sellers made some short position gains, buyers quickly rallied to try to restore levels.
However, the bears were not in a position to give up the new resistance zone, leading to a price rejection at the $0.06 level.
Another sideways price action for DOGE?
Source: DOGE/USDT on Trading View
A look southward at DOGE’s price action revealed that the last significant break of a support level on August 17 led to an extended period of price action for the memecoin.
Breaking the $0.06 support could lead to the same outcome. This is due to the nearby support level at USD 0.055. If the bulls defend this support level and the bears continue to hold strongly at $0.06, a series of rebounds and pullbacks from the support and resistance levels could occur.
The On Balance Volume (OBV) indicated the possibility of a price range as it continued to steadily decline. A lack of sufficient trading volume would result in reduced volatility.
On the other hand, the Relative Strength Index (RSI) highlighted the bullish recovery, which climbed out of the oversold zone. Yet it failed to scale the neutral 50, showing that buyers did not have the necessary purchasing power.
Speculators are unimpressed by bullish recovery
Source: Coinalyse
Realistic or not, here is DOGE’s market cap in BTC terms
Despite the bulls’ recovery attempts, market speculators didn’t believe in it, as evidenced by the Cumulative Volume Delta (CVD) spot. The spot CVD maintained its long-term decline, highlighting a serious lack of demand for DOGE in the futures market.
Although the Open Interest (OI) showed a significant increase over the past 24 hours, this was not enough to reverse the bearish sentiment in the short term. However, DOGE traders should be wary of Bitcoin [BTC] price action as it can quickly change market sentiment.
