The rebound of Dogecoin [DOGE] stalled around the $0.06 barrier level. This came following a wave of selling that caused the price to drop below a crucial buying support level on October 9.
According to AMBCrypto’s technical analysis of Dogecoin on October 11, the market offered sellers an excellent chance to short the cryptocurrency due to its violation of this support zone. Although sellers did record some gains from shorting, purchasers responded swiftly to try to bring the level back up.
Bears, on the other hand, were unwilling to give up the new resistance zone, which caused a price rejection at $0.06.
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Is DOGE’s pricing movement once again choppy?
A closer examination of DOGE’s price movement to the south showed that the memecoin saw a protracted stretch of range-bound price action following the last notable violation of a support level on August 17.
Dogecoin’s optimistic comeback was denied; what now?,Dogecoin’s optimistic comeback was denied; what now?
The same result might occur from a violation of the $0.06 support. This is a result of the $0.055 close support level. A sequence of rallies and declines off the support and resistance levels may take place if the bulls maintain this support level and the bears hold firm to the $0.06.
The price range potential was suggested by the On Balance Volume (OBV), which was declining continuously. If there was not enough trade volume, the volatility would be lower.
Conversely, the bullish comeback was indicated by the Relative Strength Index (RSI), which broke out of the oversold area. However, it was unable to cross the neutral 50, indicating that consumers lacked the necessary purchasing power.
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The positive bounce has not impressed speculators.
The spot Cumulative Volume Delta (CVD) shows that market speculators were not convinced by bulls’ attempts at a rebound. The spot CVD continued its long downward trend, indicating a serious deficiency of interest in DOGE in the futures market.
Even though the Open Interest (OI) increased somewhat over the previous day, the short-term pessimistic attitude persisted. Traders of DOGE should, however, monitor the price activity of Bitcoin [BTC], since this has the potential to abruptly alter market mood.
Dogecoin’s optimistic comeback was denied; what now?,Dogecoin’s optimistic comeback was denied; what now?,Dogecoin’s optimistic comeback was denied; what now?