- Dogecoin has a bearish market structure on the higher timeframes.
- Liquidity below $0.1 is likely to attract prices toward it before a reversal can happen.
As a crypto investor with some experience in the market, I’ve seen my fair share of ups and downs when it comes to Dogecoin [DOGE]. The recent bounce from the lows at $0.0913 was a welcome relief for many, but based on the current market structure, I believe that Dogecoin has a bearish outlook on the higher timeframes.
Dogecoin’s price has surged by nearly 20% since reaching its bottom at $0.0913 on July 5, a Friday. Most cryptocurrencies displayed a rebound following the recent market downturn, but not all have been able to maintain their upward momentum.
One potential rephrase: The forecast for Dogecoin’s price indicates that it could experience difficulty maintaining its current upward trend. It’s more probable that the prices will stabilize or even decrease due to the feeble buying power.
The bulls are hanging on by a thread to the $0.1 level
As a researcher studying the cryptocurrency market, I’ve observed that Dogecoin has dipped below its March lows and wiped out all the progress it made towards the end of that month. The upcoming demand zone for this digital currency can be found in the vicinity of $0.0775 to $0.082.
It was where prices were consolidating for two months before the wild rally in February and March.
In simpler terms, the daily Relative Strength Index (RSI) remained below the neutral 50 level, signaling that the downtrend was ongoing. On the other hand, the Chaikin Money Flow (CMF) stood at a positive 0.03, suggesting an influx of buying power in the market. Yet, it seems that buyers may not have enough strength to counteract recent losses.
The outlook for Dogecoin’s price continues to be pessimistic, but this perspective could shift if the coin’s value manages to surpass $0.13 and hold that level as a support point.
More reasons why the Dogecoin price prediction is discouraging for investors
An analysis conducted by AMBCrypto over the past six months, referred to as a “look back period,” revealed three distinguishable zones of liquidity in the crypto market, with prices ranging between $0.1 and $0.112.
Last week, they were all wiped out, and the memecoin bounced to retest this region as resistance.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
In simpler terms, the range between $0.0745 and $0.079 was the nearest significant area for trading DOGE with a high volume of transactions. Given the current market trends and its proximity, it is likely to draw DOGE towards this region.
Once it is taken out, the prices would be free to reverse bullishly and target the $0.18 territory.
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2024-07-09 00:07