Can Dogecoin be held within a range or will a bearish trend cause it to break down?
Dogecoin (DOGE) is experiencing strong bearish sentiment on higher timeframes as on-chain metrics show increased selling pressure and the possibility of it being undervalued. Despite Bitcoin’s recent foray below the $26.2k mark, DOGE has been defended around key support since late December, with momentum and structure favoring bears and buyers having little say in the market. DOGE has been in a steady downtrend since mid-April, failing to climb back above $0.09 and breaking the previously bullish market structure. The OBV has been in decline and the RSI unable to climb above neutral 50 since then, indicating a strong selling and steady downtrend. The next bearish target is $0.066 support and a move to $0.06 before reversing could indicate a liquidity hunt, while cautious traders can wait for a reaction from the $0.06-$0.066 area before looking to enter swing trades. Open Interest has been constantly falling over the past week, leading to discouraged bulls and significant bearish sentiment. Long positions dominated the liquidations charts in May as prices continued to drop.
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