- Dogecoin bulls have forced a bullish breakout of the market structure.
- The shorter time frame sentiment could propel DOGE towards near Fibonacci levels.
Dogecoin (DOGE) has recently seen positive performance in the cryptocurrency markets. Its 7.3% surge on Friday, August 23, was a sign of bullish intent and meant that another 8-18% move could come soon.
A growing number of Dogecoin wallets have been making money. With the market trending down since May, this indicates that profit-taking activity could be emerging and hindering Dogecoin’s advance.
Dogecoin Reclaims Local Resistance Zone as Support
Source: DOGE/USDT on TradingView
The market structure on the daily chart was bullish after the daily session closed above $0.111 on August 23. However, the long-term trend was bearish, with occasional bullish structures in between, such as the recent development.
Fibonacci retracement levels based on the price decline over the past month have highlighted the $0.1196 and $0.13 levels as the next resistance areas. Given the bullish structure, Dogecoin is likely to hit either or both of these levels.
The daily RSI was above 50, indicating a bullish trend. However, the OBV failed to increase significantly. Therefore, as the momentum shifted, the lack of demand meant that DOGE’s gains would be easy to reverse.
Short-term bullish, less hopeful in the long term
Source: Coinalyze
DOGE’s funding rate has seen a decline over the past two days but has remained positive. Open interest has increased alongside the price to signal bullish momentum, although it has seen a slight decline over the past 24 hours.
During this period, Dogecoin fell just over 4%, from $0.1149 to $0.11.
Read Dogecoin (DOGE) Price Prediction for 2024-25
As futures data showed speculators were ready to move higher, spot CVD started to trend lower again.
This showed little buying activity in spot markets and reinforced the idea that Dogecoin’s gains could be easy to erase if bearish sentiment takes control.
Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and represents the opinion of the author only.
