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The retracement below 78.6% meant that Dogecoin could trade within a range. Long positions inflated massively in December, so bulls should remain cautious

Bitcoin had a quiet few days as volatility subsided over the weekend. It could return with a vengeance on Monday. Stock market indices like the S&P 500 have been bearish over the past week and December 19 could set the trend for the next week.

Read Dogecoins [DOGE] Price Forecast 2023-24

Dogecoin fell back into a support area of ​​$0.072 and saw a 4% gain over the past two days, but Open Interest was weak. However, it still encountered resistance at $0.08, a level that was significant over the past month. Can bulls regain this level and push higher?

A bullish order block saves Dogecoin, but this could be nothing more than a temporary hiatus

Source: DOGE/USDT on TradingView

Based on the move from $0.071 to $0.119 at the end of November, a series of Fibonacci retracement levels (yellow) was drawn. At the time of writing, the price has fallen below the 78.6% retracement level. It hit a bullish order block, highlighted in cyan, above the $0.072 support level.

The almost complete retracement meant that Dogecoin was probably trading within a range and not in a strong trend. The Relative Strength Index (RSI) has fluctuated from strong bullish to strong bearish momentum, although DOGE has shown no longer-term trend since mid-November. The On-Balance Volume (OBV) also fell below a level of support from the end of November.

Together they suggested that the sellers were dominant. A daily session close to $0.071 would likely trigger a downward move for DOGE. However, brave bulls can try to provide the asset within this zone.

The $0.8 level was flipped to $0.119 a few weeks ago ahead of the rise. It made sense both as a horizontal level and as a Fibonacci retracement level. A retest as support in the coming days could provide a buying opportunity. Take profit targets would be the bearish breaker at $0.091 and the $0.11 highs. Below $0.072, the next support level is at $0.065.

Open Interest saw a small increase over the weekend and the funding rate remained positive

Source: Coinalyse

Since the beginning of December, Dogecoin has seen a session with a sharp price drop. These were accompanied by the liquidation of long positions worth millions of dollars. During the fall from $0.119 on December 5 to $0.075 on December 16, Open Interest also saw a decline.

This indicated that long positions were being discouraged. The funding rate remained positive, which also showed that most of the market was not starting to pile up in short positions.

This post Here’s why Dogecoin needs to recoup $0.08 to give buyers any hope

was published first on https://ambcrypto.com/here-is-why-dogecoin-must-reclaim-0-08-to-offer-buyers-any-hope/


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