Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Dogecoin traded within a one month range. A deviation below the low range followed by a reversal would be a buying opportunity.
Bitcoin visited the $21.4k area in the past few hours, but bounced back to $21.6k. This level is a critical support level for Bitcoin.
The $21.2k – $21.6k area acted as resistance in August and early November. Ideally, if the January rally continues, BTC would see a recovery from this zone.
In light of this information, the fact that Dogecoin was also on top of a month-long support suggested that buyers will likely set their eyes on DOGE in the coming days.
Read the Dogecoin 2023-24 price prediction
If Dogecoin recovers, it could take a 15% gain to the north before encountering significant resistance. On the other hand, increased selling pressure could lead to sharp losses for the meme coin.
Dogecoin rally pulls back after encountering a 12-hour bearish order block
The red box marked a 12-hour bearish order block just below the $0.1 level. Dogecoin rose from $0.067 to $0.099 in early February. This represented a 48% gain in five weeks. However, the $0.1 is a psychological and technical area of resistance.
Sellers again proved their strength as DOGE retested the $0.09-$0.1 zone. A bearish divergence was also observed at that time. A range of $0.079-$0.092 was highlighted in yellow. It can be seen that the midpoint of this range, at $0.086, has served as support and resistance for the past month.
This emphasized the credibility of the range, despite the deviation towards $0.1 earlier this month. At the time of writing, the price was back at its lowest point. The RSI has made a series of higher lows in recent days, while DOGE remained flat at $0.082.
How much is 1, 10, 100 DOGE worth?
The CMF was in neutral territory, but it has already been emphasized that both BTC and DOGE were trading just above significant support levels.
From a risk-to-reward perspective, buying DOGE in the $0.078-$0.082 area could be profitable over the next two weeks. Bulls can take gains on the mid range and high range at $0.086 and $0.092 respectively.
MVRV and weighted sentiment highlight the selling pressure of the past two weeks
The 30-day MVRV ratio dipped below zero as selling pressure mounted in recent days. A spike was also seen in DOGE’s 90-day dormant circulation. This suggested that a modest amount of DOGE had been moved, reinforcing the idea of selling pressure.
Another interpretation of this data is that short-term holders have finished taking profits and the price was ripe for another upward move. Combined with the technical findings, this seemed the most likely conclusion.
Still, a drop below $0.078 would be a stern warning signal to buyers that bears have once again taken control.
This post Does Dogecoin Offer a Buying Opportunity at Its Latest Dip?
was published first on https://ambcrypto.com/does-dogecoin-present-a-buying-opportunity-on-its-latest-dip/