Dogecoin – Analyzing why DOGE traders should watch $0.196 next
Key Takeaways
Dogecoin technical indicators outlined bearishness within the brief time period after the meme coin raced decrease from the $0.25 stage, however the liquidation heatmap confirmed there was an opportunity of a worth bounce within the coming days.
Dogecoin [DOGE] confronted rejection on the $0.285 resistance stage. Beforehand, this stage had been examined as resistance again in February.
The bearish strain on Bitcoin [BTC] has not been excessive in current days. Bitcoin has ranged between $116.7K and $122K, however the promoting strain over the previous 24 hours noticed it drop beneath the vary low.
Even when BTC had been ranging, Dogecoin didn’t show a lot power. The $0.25 stage, which bulls would have hoped to defend, was simply breached. A
On the time of writing, the mid-range stage at $0.196 was the subsequent probably worth goal.
Technical indicators give a bearish forecast for DOGE
Supply: DOGE/USDT on TradingView
The vary (white) for DOGE prolonged from $0.142 to $0.25. The 50-period Transferring Common was slightly below the $0.196 mid-range stage, and collectively they need to function assist.
Nevertheless, the failure to defend the $0.25 as assist final week was telling.
The OBV has made a brand new low in comparison with the earlier week, and the RSI has dipped beneath impartial 50, at press time. Each indicators confirmed bears had the higher hand.
A drop beneath $0.195 could be a agency sign that the $0.142 vary low was the subsequent vacation spot. Till then, swing merchants can wait as a substitute of speeding to open brief positions.
The two-week liquidation heatmap confirmed that there was some liquidity slightly below the $0.2 stage. To the north, the $0.227 and $0.25 ranges have been the important thing magnetic zones.
The cluster of liquidity overhead meant that, although bears have the higher hand, the value is perhaps pulled increased within the coming days.
The case for a Dogecoin worth bounce would get stronger if Bitcoin can reclaim the $116.7K stage as assist as soon as once more.
The three-day liquidation heatmap for DOGE additionally highlighted the chance of a worth bounce to $0.23. Within the brief time period, a worth bounce was doable and could be contingent on BTC’s efficiency.
For long-term traders, the false breakout final week could be a disappointment, however a drop towards the vary lows ought to give them one other likelihood so as to add to their holdings.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
