Dogecoin’s recent short-term bullish trend and its overall structure turned bearish following a rejection at the $0.064 mark. As bears persistently apply pressure, it is anticipated that there may be a complete retracement of the rally witnessed last week.
The bulls of Dogecoin (DOGE) sparked a rally on September 28th following a decline into a demand zone. They successfully broke through the immediate resistance at $0.063. However, within the past 24 hours, bears managed to swiftly push for a retracement.
Dogecoin is now facing the possibility of another decline towards its support level as the momentum in the market has turned bearish.
On the four-hour chart, the Relative Strength Index (RSI) dipped below the neutral 50 mark, indicating the onset of bearish momentum. Additionally, the market structure displayed a bearish trend when the higher low established at $0.0617 on October 1st was breached.
The Directional Movement Index (DMI) has provided a clear indication of a robust bearish trend currently underway. Both the -DI (in red) and the Average Directional Index (ADX) (in yellow) have surpassed the 20 mark, reinforcing the strength of the sellers in the recent hours, as supported by both indicators and price action.
Examining the one-day chart, the meme coin has exhibited a lack of a decisive trend, instead oscillating between the $0.06 to $0.0635 range since September 10th. As a result, prospective buyers have the option to consider a long position either at the $0.06 level or upon a breakout beyond the $0.064 resistance.
Short-term bullish sentiment is diminishing as both Bitcoin (BTC) and Dogecoin (DOGE) experience a pullback in their respective prices.
Dogecoin encountered resistance at the $0.0642 level, shortly before Bitcoin underwent a reversal in its bullish momentum around the $28.5k threshold. This pullback in Bitcoin’s price further strengthened the bearish sentiment affecting altcoins, including Dogecoin (DOGE).
The decline in Open Interest (OI) on October 2nd coincided with the drop in prices from the $0.064 range. This simultaneous decrease in OI and prices indicated a lack of enthusiasm among long positions and an overall bearish sentiment. Furthermore, the spot Cumulative Volume Delta (CVD) also exhibited a downturn over the last 24 hours.
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