- Dogecoin has a bullish structure on the daily but could be flipped bearishly soon.
- Traders need to remain cautious of a short squeeze as bearish sentiment rises.
As a seasoned analyst with over two decades of experience in the crypto market, I must admit that Dogecoin [DOGE] is currently exhibiting bearish signals that should not be ignored. My personal life experience has taught me the hard way that sentiment and momentum can be powerful forces in the market.
Dogecoin (DOGE) demonstrated a noticeable downward trend in the short term, hinting at bearish sentiments. The buying activity wasn’t as robust as anticipated by bullish investors. Moreover, Bitcoin‘s [BTC] recent correction from $64k this week negatively impacted Dogecoin’s rebound efforts.
As an analyst, I find myself hesitant about the prospect of a swift Dogecoin recovery in the immediate future based on my analysis of the Futures market. It’s important to consider whether traders should brace themselves for potential additional losses, or if they might choose to take a bold stance and invest further in this meme coin.
Dogecoin sinks to a local support zone
After a week’s advance, Dogecoin returned to the significant level of $0.1 and is currently being traded there. Yet, the coin’s progression and trading volume suggest a downward trend.
The Awesome Oscillator was in negative territory and indicated rising bearish momentum.
It seems that the On-Balance Volume (OBV) didn’t manage to surpass the recent peaks it had reached this month, indicating a lack of significant buying activity. As a result, traders should exercise caution and curb their anticipations for additional increases.
If demand rises, there’s a chance the price could jump towards the $0.108 to $0.112 resistance level. However, it’s also plausible that the price might drop to around $0.095 to search for liquidity in the short term.
Market sentiment has weakened in recent days
Over the last several days, both the Open Interest and the price have been dropping. At the same time, the Funding Rate has decreased significantly and became negative recently. This suggests that there’s increasing bearish sentiment among traders, based on the data observed.
Read Dogecoin’s [DOGE] Price Prediction 2024-25
On the spot market, there was little optimism about a Dogecoin price recovery persisting. Despite the meme coin’s position around a support level, the spot market’s value continued to trend downward instead.
Overall, it appeared that a move below $0.095 was brewing.
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2024-08-30 16:07