Dogecoin Under Pressure: Will Bearish Momentum Push Meme Coin Below $0.06?
06 Outubro 2023 - 9:00AM
NEWSBTC
Dogecoin (DOGE) finds itself at a critical juncture. The $0.06
support level, a longstanding stronghold for buyers since early
June, now faces increasing selling pressure that could potentially
send DOGE sinking below this key level. Support and
resistance zones, like the $0.06 mark, are pivotal in assessing the
direction of price movements in the crypto world, as they often
dictate the market sentiment. In recent months, DOGE has weathered
a bearish trend, but this vital support level has managed to hold
firm and mitigate the extent of the downtrend. Nevertheless,
multiple retests of the support zone have raised concerns about
DOGE’s weakening structure, signaling an opportunity for bears to
capitalize on the situation. Related Reading: Trillions In Shiba
Inu On The Move: What Lies Ahead For The Meme Coin? Dogecoin Price
And Technical Indicators As of the latest data from CoinGecko, DOGE
is currently trading at $0.061140, showing a modest 0.4% gain over
the last 24 hours but a 1.2% dip over the past seven days. Two
technical indicators, the On Balance Volume (OBV) and the Relative
Strength Index (RSI), provide further insight into the market’s
dynamics. The OBV, which had been on an uptrend in October, has
recently exhibited a drop in trading volume. This decline suggests
that selling pressure has intensified in the past few hours,
causing concern among investors. DOGE reached a market cap $8.6
billion today. Chart: TradingView.com The RSI, another crucial
indicator, has dipped below the neutral 50 level, reaffirming the
presence of selling pressure. These developments put DOGE at a
pivotal crossroads, with both short-term bullish and bearish
scenarios in play. According to a price report, if buyers can
successfully defend the $0.06 support level, DOGE could see a
short-term target range of $0.064 to $0.067. However, if sellers
manage to breach this critical support, their near-term target
becomes $0.055, potentially deepening the bearish sentiment. Market
Volatility Vs. Derivatives Trading In addition to the price
fluctuations, the Dogecoin market has been marked by considerable
volatility lately. Yet, despite the turbulence, new derivatives
traders have remained conspicuously absent. Source: Coinalyze
DOGE’s futures Open Interest (OI) has been hovering in the $232
million to $222 million range for the past week. Typically, rising
open interest indicates an influx of new capital into the market,
which often solidifies prevailing trends. However, the current
trend suggests trader indifference, possibly due to the uncertainty
surrounding DOGE’s immediate future. Related Reading: Assessing
Cardano’s Struggles: Will Key Support Levels Halt The Decline Above
$0.27? Traders should closely monitor whether the current key
support can withstand the pressure, and the OBV and RSI indicators
provide essential insights into the evolving market dynamics. The
next few days will be crucial in determining whether DOGE can
regain its bullish momentum or succumb to further bearish pressure.
(This site’s content should not be construed as investment advice.
Investing involves risk. When you invest, your capital is subject
to risk). Featured image from Tuttnauer
Dogecoin (COIN:DOGEUSD)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Dogecoin (COIN:DOGEUSD)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024