By Franklin Smith
Dogecoin has maintained downtrends since November last year. Meanwhile, the plunge has witnessed swift double-digit percentage gains. DOGE saw one such rally during the previous month when the leading meme coin gained approximately 50%, climbing from $0.059 to $0.087 in August.
While publishing this post, DOGE wavered precariously within a demand territory. Dogecoin’s long-term market structure remained bearish, while BTC indicated weakness on its charts.
Dogecoin 1Day Timeframe
Bitcoin’s movement always impact altcoins’ performance. DOGE and other meme tokens tend to pop up around the end of BTC’s upside and fall harder than the bellwether crypto.
That seemed to occur during mid-August sessions when BTC topped at $24K, but Dogecoin still boasted strength to push to $0.085 from $0.07.
While writing these lines, Dogecoin changed hands near $0.062 and remained in the demand territory from July. Considering the price action, DOGE could climb towards $0.07.
DOGE might record another downward wick to test the liquidity around $0.06. But the meme coin can surge, provided prices escape a daily closing beneath $0.057.
This narrative gains some logic when considering that July and most of August had Dogecoin ranging from $0.063 – $0.07. On the other hand, Bitcoin encounters massive resistance at $20.4K – $20.8K. A move past this territory can see Dogecoin gathering the momentum to skyrocket.
Reasoning
Dogecoin indicators highlighted some bearish stances for the leading meme coin. The RSI (Relative Strength Index) dropped below the neutral-50 within the last two weeks. That highlighted bearishness on the daily chart.
The OBV (on-balance volume) didn’t suffer sudden dips. The indicator stood at a support level, which it respected within the last few months.
Meanwhile, the CMF (Chaikin Money Flow) has reflected intense selling momentum throughout August. The Bollinger Band Width also maintained upsides. The indicator shows the latest volatility surge after Dogecoin fell from $0.085.
Final Thought
The OBV’s failure to maintain its support mark within the coming two weeks might welcome DOGE’s drop below $0.057. Meanwhile, the $0.062 price zone remained essential in February-March last year. Losing the value area will trigger swift downsides to $0.048-$0.05.
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