Key Takeaways
Is there evidence that sentiment has turned bullish for Dogecoin?
No, the Elon Musk post a few days ago and the recent price bounce saw a brief spike in social media engagement, but nothing sustained to reverse the downtrend.
What should DOGE traders expect now?
The $0.18-$0.19 was a key resistance zone and a rejection from here was underway, with the next price targets being $0.15 and $0.13.
Dogecoin [DOGE] and the memecoin market have shed 31% in value over the past month, according to CoinMarketCap data. Elon Musk’s post on X saw a social media buzz that price did not follow.
The decline in Open Interest in recent hours was accompanied by a retest of a resistance zone at $0.18. In the past 24 hours, DOGE was down by 2.67%, and its OI is down 3.66%. It signaled short-term bearishness.
Is this a signal for traders to go short? AMBCrypto examined the price charts to forecast the next move and also plot where its invalidation lies.
The rejection at KEY support shows a bearish Dogecoin
Last week’s bearish forecast proved right, and a Dogecoin price move to $0.15 has materialized. At the time of writing, the rejection from the $0.18 level was a sign that the bears were still in power on the 1-day timeframe.
Lower-timeframe metrics supported this bias: both Open Interest and short-term price performance showed persistent selling pressure.
The daily timeframe has a bearish structure and a steady downtrend in the OBV. The MFI also signaled that sellers were in control.
Together, they showed why the $0.18 former support would likely be the beginning of a downward move that reaches $0.15 again, and possibly as low as the $0.13 support.
The bearish structure would be broken if Dogecoin can climb back above $0.209.
Liquidity data hints at ONE last squeeze
Source: CoinGlass
The 2-week Liquidation Heatmap highlighted the presence of liquidity overheat at $0.19 and $0.204. These short liquidations might be targeted before a price drop toward $0.13.
Watch out for a trend shift on the 1-day timeframe’s OBV, combined with a move past $0.209, for the beginning of an uptrend.
Until then, a potential bounce, even as high as $0.204, would be for selling.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
