Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The POC’s loss showed that sentiment was strongly bearish. Higher lows in the time frame can be tested as support.
Dogecoin [DOGE] has been in a downward trend on the daily time frame since April 21, when DOGE prices fell below $0.081. The strength of this downtrend has weakened over the past two weeks. However, the 4-hour charts showed that a spike in selling pressure could push prices back down.
How much are 1, 10 or 100 DOGE worth today?
This peak came on May 24 when Bitcoin fell rapidly from $27,250 to $26,700. Bitcoin was trading at $26.2k at the time of writing and it looked like new lows would be reached this month. This, in turn, could harm Dogecoin bulls.
Not all imbalances are created equal, but there was an additional confluence here
The volume profile visible range on the early May 4-hour chart showed the checkpoint (red) at $0.072.
The Value Area Low was $0.0687, and both levels were considered important support levels for Dogecoin prices.
This changed in the last 36 hours, when the sudden selling behind BTC led to a drop in DOGE prices. The H4 market structure was once again bearish, in line with the trend in the higher time frame.
Therefore, traders can expect the meme coin to drop in the coming days. The RSI supported this idea with a bearish reading of 36.
A fair value gap (white) was marked on the charts and merged with the POC. This showed two things: First, bears were extremely strong in that area. Two, that a retest of $0.072 as resistance could present a good risk-reward opportunity.
Realistic or not, here is DOGE’s market cap in BTC terms
Selling pressure began to build over the weekend and has not eased
The Open Interest and spot CVD underlined the bearish strength. The OI saw a sharp drop on May 24, losing nearly $20 million on the charts in response to the price drop. This showed discouraged longs and dominant bearish sentiment.
The major downturn in the CVD was another sign that sellers were in power. The $0.07 area has acted as support since March 20, with $0.066 and $0.0635 to watch for further south.
This post DOGE investors could face new losses if prices fall below key levels
was published first on https://ambcrypto.com/doge-investors-may-see-fresh-losses-as-prices-fall-below-key-level/