Predicting Dogecoin’s Downtrend Following Late-June Rally
Dogecoin recently experienced a short-term bullish momentum, but it has since encountered resistance at the $0.073 level. This resistance suggests that DOGE may see further losses. The trend of Dogecoin has been pointing downward on the 1-day chart, with a brief rally to $0.728 on July 1st. However, this rally was quickly countered by sellers and the market structure has remained bearish. The RSI has slipped below the neutral 50 level, indicating a shift in momentum towards the bears. The OBV has also not shown strong conviction from buyers, as it has been unable to breach a resistance level from May.
The Open Interest chart reveals that buyer confidence in Dogecoin has been low. While there was a slight increase in Open Interest when DOGE climbed above $0.061, it was nowhere near the levels seen during the rally in early April when Dogecoin reached $0.1. This lack of a strong uptrend on the Open Interest chart suggests that buyers are not confident in the current price levels. This trend is also reflected on lower timeframes.
Overall, the outlook for Dogecoin suggests further losses may be on the horizon. The resistance at the higher timeframe level of $0.073 has not been breached, indicating a lack of bullish sentiment. The market structure remains bearish, with the RSI below the neutral level and the OBV unable to break resistance. Buyer confidence, as indicated by the Open Interest chart, is also low. Therefore, it is important for investors to exercise caution and carefully consider their investment strategies when it comes to Dogecoin.
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