Potential Gains for Short-term Investors in Dogecoin [DOGE], But Only if…
The lower timeframe structure of Dogecoin (DOGE) remains bearish, with strong resistance seen at the $0.08 region since early March. If Bitcoin (BTC) experiences volatility following its recent drop to $26.5k, it could provide short sellers with a better risk-to-reward region to sell Dogecoin. Two scenarios could unfold for DOGE: a drop below the $0.071 support, which could open the gates for short-term bears targeting support zones at $0.068 and $0.065 to take profits, or a bounce from this region to the $0.075-$0.078 area, which could also be shorted. The RSI and CMF on the two-hour chart suggest a near-term downtrend and significant capital flow out of the DOGE market. Monday’s volatility saw a swing high of $0.0764 before dropping to test the $0.0713 support level, resulting in a drop of 6.7% and a decrease in open interest from $261 million to $243 million. While the predicted funding rate was positive, overall sentiment towards DOGE remains bearish.
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