Dogecoin traders must prepare for unpredictable price swings as…
The market structure appears to be favorable for sellers, with a potential full retracement of recent losses for Bitcoin. Bitcoin found temporary support at $25k but faces strong resistance levels. However, there could be a minor move upward to collect liquidity, potentially leading to a rally in the altcoin market, including Dogecoin. Nevertheless, a bearish reversal is expected in the near future, although traders must be prepared for a rally as well.
Dogecoin’s trading volume has been low, indicating indecisiveness among market participants. Attempting to open trade positions could be risky until a clear direction is established. The Fibonacci retracement levels highlight strong resistance levels for Dogecoin, and sellers must be cautious. A move back to $0.072 or slightly higher before the resumption of the downtrend is likely.
The Chaikin Money Flow and Awesome Oscillator show some faint bullish momentum for DOGE. Risk-averse traders may wait until DOGE establishes Monday’s high to gauge market sentiment. The falling spot Cumulative Volume Delta reflects clear seller dominance.
The Open Interest for Dogecoin increased by around $28 million when it bounced from $0.059 to $0.063. However, both the Open Interest and price have slightly declined in the past 24 hours. Overall, the Open Interest does not reflect bullish sentiment yet, but if DOGE approaches $0.07, it is likely that bulls will increase their positions.