Is the Decline of Dogecoin [DOGE] to Key Support Interfering with Shorting Gains?

Dogecoin (DOGE) has struggled to recover from losses sustained in the second half of April, with the price action hovering between moving averages and a bullish order block on the four-hour chart. At present, the price has dropped towards the bullish order block near $0.07600, a crucial support level throughout April. If the support holds, DOGE could rebound and inflict a short-term recovery towards the local overhead resistance level at $0.08098, 50-EMA ($0.08083), 200-EMA ($0.08216), and $0.08481. However, a close below $0.07600 could result in a downtrend towards lower supports at $0.07322 or the March swing low of $0.06500, which could be accelerated if Bitcoin (BTC) drops below $28k. The oversold condition of RSI suggests sellers may seek a break soon, but OBV remained flat in the past few days and confirmed limited demand. Open interest (OI) rates dropped to $355.026M at press time, indicating a short-term bearish sentiment in the futures market that may favor sellers. However, the positive funding rates could spoil sellers’ efforts. An improvement in OI alongside positive funding rates could confirm a bullish momentum and possible recovery.

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About The Author

Niels I have been passionate about dogecoin since 2019, and have since become an avid follower and advocate of the cryptocurrency. I keep a close eye on the Dogecoin market and trends, and I'm always up-to-date with the latest news and developments. As a true believer in the potential of dogecoin, I am excited to be a part of the growing community and I'm eager to share my knowledge and experience with others. When not busy with dogecoin, I enjoy golf, and I can often be found on the golf course.

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