How a ‘flippening’ could be key to Dogecoin investors buying again
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
On the long-term outlook, Dogecoin has been in a downtrend since June final yr. The value has been unable to set a better excessive and has registered a collection of decrease lows to characterize a downtrend. There have been instances in between when DOGE bulls rode a wave upward however the longer-term pattern remained downward. May a bullish Bitcoin catalyze a response?
DOGE- 1 day chart
Since December, the worth has examined the $0.2 space of provide a number of instances however has been rejected on every attempt, with the most recent being in mid-January.
A set of Fibonacci retracement ranges have been drawn based mostly on DOGE’s drop from $0.34 to $0.12. In early February, the broader crypto market noticed some short-term bullishness, and so did Dogecoin. Nonetheless, even this wave upward was rejected on the 23.6% retracement degree at $0.1723.
This indicated that Dogecoin may see additional losses within the weeks to come back. To interrupt the bearish market construction, DOGE must flip the $0.1723 and $0.196 ranges to help, and persuade market members that the long-term pattern may have flipped.
The every day RSI has risen previous impartial 50 solely a few instances prior to now two months and has been unable to rise above 60 on both try. Since late November, the RSI has been under impartial 50 to point bearish momentum has been important in latest months.
On the OBV, there was no robust indication that purchasing quantity was on the rise. The OBV has been forming larger lows in latest months- which was barely encouraging, however not sufficient data to purchase DOGE based mostly on.
The MACD additionally struggled to rise above the zero line- it hasn’t been in a position to since November, though it was on the verge of forming a bullish crossover under the zero line.
The market construction for DOGE was bearish, and every bounce from the $0.135 and $0.12 ranges has been weaker and weaker. Merely put, demand has been weakening these days.
Due to this fact, risk-averse traders wish to see the $0.135-level flip to help earlier than contemplating shopping for.