- Dogecoin confirmed robust bullish intent on the value chart.
- The dearth of quantity barely dampened the client vigor.
Dogecoin [DOGE] witnessed a major whale transaction on the fifteenth of February, however the value rebounded strongly after a minor dip. Nonetheless, the bulls have been unable to reclaim the 78.6% Fibonacci retracement degree.
In different information, the meme coin managed to enter the highest 10 cryptos by market capitalization for a short window of time. Nonetheless, Chainlink [LINK] was fast to flip DOGE at press time and push it downward to the eleventh spot.
Analyzing the Fibonacci ranges alongside the construction
Supply: DOGE/USDT on TradingView
Based mostly on the drop from $0.0944 to $0.075 within the first week of 2024, a set of Fibonacci retracement ranges (pale yellow) have been plotted. A bearish order block on the 12-hour chart on the $0.084 area was additionally highlighted in cyan.
Collectively, they underlined the robust resistance that has been current on the $0.083-$0.086 area. Up to now few days, DOGE bulls have been in a position to escape previous it after greater than a month of making an attempt.
Nonetheless, whereas the market construction and the momentum from the RSI signaled bullishness, warning was warranted. The OBV was but to interrupt out previous the native highs set earlier this yr. This meant that purchasing quantity had been comparatively weak regardless of the value beneficial properties.
The 78.6% retracement degree at $0.09 additionally pressured a minor dip previously 12 hours. Dogecoin was buying and selling at $0.086 as soon as extra, and a retest of the previous resistance zone indicated that this was a shopping for alternative for the bulls. Or is it a rejection and the start of a downtrend?
Clearing among the confusion across the value motion
Supply: Santiment
Meme coin investments are wrought with danger. The weighted market sentiment has been unfavourable because the last week of January, which meant that the market individuals weren’t too eager on shopping for DOGE.
Nonetheless, the Open Curiosity rose steadily increased, which confirmed speculators have been excited to guess on continued value beneficial properties. The lively addresses additionally soared in latest days and will gasoline demand for Dogecoin.
Life like or not, right here’s DOGE’s market cap in BTC’s phrases
Placing all the knowledge collectively, it appeared that purchasing Dogecoin was a safer guess than going brief. The $0.0815-$0.083 represented a pocket of liquidity that could possibly be swept earlier than the rally continues.
If the token costs fall beneath the $0.081 mark, merchants may flip their bias bearishly. A drop beneath $0.0819 would flip the market construction bearishly as effectively.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.