Dogecoin [DOGE] drops to key support; are shorting gains limited
Dogecoin [DOGE] has slid to a key support level and could witness a recovery if BTC maintains the $28k zone.
• Structure on H4 was bearish at press time.
• Open interest dipped slightly, but funding rates were positive.
Dogecoin [DOGE] hasn’t recovered from losses sustained in the second half of April. In the past ten days, price action oscillated between moving averages and a bullish order block (OB) on the four-hour chart (cyan).
At press time, price action dipped further towards the bullish order block near $0.07600 – a crucial support throughout April. Will it hold in May and rescue near-term bulls again, or can sellers crack it?
Previous retests on the bullish order block (cyan) have led to a recovery. If the trend continues, DOGE could rebound and inflict a short-term recovery.
Hence, a direct or pullback retest on the $0.07600 – $0.07728 zone could set DOGE to rally toward the local overhead resistance level at $0.08098. The resistance level also lines up with 50-EMA ($0.08083). Above this level, the next obstacles exist at 200-EMA ($0.08216) and $0.08481.
Conversely, DOGE could witness more aggressive selling if the support cracks. A close below $0.07600 could sink DOGE to lower supports at $0.07322 or the March swing low of $0.06500 in an extreme downswing scenario. The downtrend could be accelerated if Bitcoin [BTC] drops below $28k.
Meanwhile, RSI hit 40 at press time while the stochastic RSI slid into the oversold zone – confirming a dip in buying pressure. But the oversold condition suggests sellers may seek a break soon.
Read More: https://ambcrypto.com/dogecoin-doge-drops-to-key-support-shorting-gains-limited/
Dogecoin [DOGE] has slid to a key support level and could witness a recovery if BTC maintains the $28k zone.
• Structure on H4 was bearish at press time.
• Open interest dipped slightly, but funding rates were positive.
Dogecoin [DOGE] hasn’t recovered from losses sustained in the second half of April. In the past ten days, price action oscillated between moving averages and a bullish order block (OB) on the four-hour chart (cyan).
At press time, price action dipped further towards the bullish order block near $0.07600 – a crucial support throughout April. Will it hold in May and rescue near-term bulls again, or can sellers crack it?
Previous retests on the bullish order block (cyan) have led to a recovery. If the trend continues, DOGE could rebound and inflict a short-term recovery.
Hence, a direct or pullback retest on the $0.07600 – $0.07728 zone could set DOGE to rally toward the local overhead resistance level at $0.08098. The resistance level also lines up with 50-EMA ($0.08083). Above this level, the next obstacles exist at 200-EMA ($0.08216) and $0.08481.
Conversely, DOGE could witness more aggressive selling if the support cracks. A close below $0.07600 could sink DOGE to lower supports at $0.07322 or the March swing low of $0.06500 in an extreme downswing scenario. The downtrend could be accelerated if Bitcoin [BTC] drops below $28k.
Meanwhile, RSI hit 40 at press time while the stochastic RSI slid into the oversold zone – confirming a dip in buying pressure. But the oversold condition suggests sellers may seek a break soon.
Read More: https://ambcrypto.com/dogecoin-doge-drops-to-key-support-shorting-gains-limited/
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