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- Dogecoin bulls forced a break in the bullish market structure.
- A lower time frame could push DOGE towards nearby Fibonacci levels.
Dogecoin [DOGE] Cryptocurrency markets have been on a positive run lately. The 7.3% surge on Friday, August 23 was a sign of bullish intent, meaning another 8% to 18% move could happen soon.
The number of Dogecoin wallets has been increased. In money Since the market trend has been bearish since May, this suggests that profit-taking activity may emerge again and hinder Dogecoin’s progress.
Dogecoin reclaims local resistance area as support
Source: DOGE/USDT on TradingView
The market structure on the daily chart was bullish after closing the daily session above $0.111 on August 23. However, the longer-term trend was bearish, with occasional bullish structures in between like the recent development.
Fibonacci retracement levels based on last month’s price decline have highlighted the $0.1196 and $0.13 levels as the next resistance areas. Given the bullish structure, Dogecoin is likely to reach one or both of these levels.
The daily RSI was above the 50 neutral level to indicate an uptrend. However, the OBV was unable to move significantly higher. Therefore, while momentum was shifting, the lack of demand meant that DOGE’s gains would be easy to reverse.
Bullish in the short term, not optimistic in the long term
source: Quinales
The funding rate behind DOGE has been declining over the past two days but has remained positive. The open interest rate has been rising alongside the price to indicate bullish momentum, although it has seen a slight decline in the past 24 hours.
During this time, the price of Dogecoin fell by just over 4% from $0.1149 to $0.11.
Reads Dogecoin [DOGE] Price prediction 2024-25
While futures data showed speculators were ready to invest long-term, the spot CVD index started trending lower again.
It showed weak buying activity in spot markets and reinforced the idea that Dogecoin’s gains could easily be erased if bearish sentiment takes hold.
Disclaimer: The information provided does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
