Dogecoin nears $0.22: Is now the time to go long?

    DOGE’s volume indicators disagree about the demand behind the memecoin
    The long-term bias was strongly bullish based on the price action

Dogecoin‘s price surpassed the previous resistance level of $0.18, reaching a new peak at $0.2288. However, large investors or “whales” had sold off large amounts of DOGE earlier, making the price recovery an uphill battle. (Source: AMBCrypto report)

Furthermore, there’s been a modest increase in current demand. Memecoins have experienced remarkable growth this year, which may persist in the upcoming quarters.

The buying pressure would likely push DOGE higher

The Fibonacci lines (pale yellow), drawn following the latest advance to $0.2288 in DOGE‘s price chart, encountered a pullback to the 50% mark of support. Following a brief dip near $0.175, Dogecoin has rebounded by approximately 13.5%.

On the one-day chart, the market displayed a bullish structure with a significant support level at $0.167. The RSI indicator remained above the neutral 50 threshold, indicating a strong buying momentum and a positive outlook for the day’s trading.

Since March, the OBV has consistently risen, including after its dip to $0.122. This pattern indicates strong purchasing activity, lending credence to the belief that further growth is imminent.

The spot market demand was a concern

Over the past five days, the Open Interest chart indicated a noticeable increase. This rise occurred concurrently with price growth. It implied that investor confidence was optimistic, and speculators were eager to buy the meme coin.

Realistic or not, here’s DOGE’s market cap in BTC’s terms

During this period, the Old Dominion Volatility (OBV) continued to climb steadily. On the other hand, the Cash Value Discount (CVD) exhibited a downward trend. The CVD experienced a slight rebound in the previous five days, yet it failed to generate sufficient momentum for significant or quick advancements.

Traders yearn for a significant increase in DOGE‘s value, similar to the one experienced after March 25th, to boost their conviction and buy it (go long).

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2024-04-09 21:11