Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
Dogecoin There has been little demand in the last few weeks. In fact, sales exceeded April purchases and prices rose from $ 0.134 to $ 0.173. Elon Musk tweeted a lot about Dogecoin in April 2021 and saw a huge surge in prices.
This year, even when the mask has I pondered the idea By allowing DOGE to pay for your Twitter Blue subscription, the price isn’t very much appreciated.
DOGE-12 hour chart
There was a bullish tint in DOGE’s technical structure over longer time frames. It flipped the $ 0.132- $ 0.138 area again from resistance to support. The visible range of the volume profile showed that the control point (visible range) for the last four months was $ 0.143. The low price in the value area was $ 0.13. This means that buying can intervene in this area.
Last month’s market structure was bullish in a shorter time frame. Even for slightly longer hours, such as 6 or 12 hours, the reversal from resistance to demand in the $ 0.13 area was a significant bullish development.
But was this sustainable? As you can see, there is a clear shortage of demand. In addition, the price was rejected twice at the 61.8% Fibonacci retracement level. Alongside the lows in the value area, a 23.6% retracement level of $ 0.132 and a long-term horizontal support level.
The rationale
Source: TradingView DOGE / USDT
The RSI slipped under the Neutral 50 line and appeared to have retested the line as a resistance. This could be an early sign of a shift in momentum to the bear. Unfortunately, it is not a reliable indicator in itself. The CMF also fell below the -0.05 mark, indicating a significant capital outflow from the market.
In addition to evidence of this selling pressure, OBV followed all the rises it saw in April and fell further. This is a strong sign of selling pressure, and at the time of the press, OBV was also below the March lows.
Conclusion
The $ 0.13 level could be DOGE’s solid support level in the coming days, but sales have been significant over the past week. This can cause DOGE to fall below $ 0.13. Momentum indicators weren’t close to oversold yet.
If Dogecoin falls below $ 0.13, it may be forced to reconsider the low of $ 0.11 for liquidity.
