Disclaimer: The findings of the next evaluation are the only real 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 the next excessive and has registered a sequence of decrease lows to characterize a downtrend. There have been occasions 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 value has examined the $0.2 space of provide a number of occasions however has been rejected on every attempt, with the newest being in mid-January.
A set of Fibonacci retracement ranges had been drawn primarily based 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 stage at $0.1723.
This indicated that Dogecoin might 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 assist, and persuade market members that the long-term pattern might have flipped.
The every day RSI has risen previous impartial 50 solely a few occasions prior to now two months and has been unable to rise above 60 on both try. Since late November, the RSI has been beneath impartial 50 to point bearish momentum has been important in current months.
On the OBV, there was no sturdy indication that purchasing quantity was on the rise. The OBV has been forming greater lows in current months- which was barely encouraging, however not sufficient data to purchase DOGE primarily based on.
The MACD additionally struggled to rise above the zero line- it hasn’t been capable of since November, though it was on the verge of forming a bullish crossover beneath 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 buyers want to see the $0.135-level flip to assist earlier than contemplating shopping for.