- DOGE’s volume indicators disagree about the demand behind the memecoin
- The long-term bias was strongly bullish based on the price action
Dogecoin [DOGE] broke out past the resistance at $0.18 to set a new swing high at $0.2288. An earlier AMBCrypto report highlighted massive sell-offs from whales despite the attempt at recovery.
Additionally, the demand in the short term has been relatively muted. The performance of memecoins this year has been stellar, and the trend might continue in the coming months.
The buying pressure would likely push DOGE higher
Source: DOGE/USDT on TradingView
The Fibonacci retracement levels (pale yellow) plotted for the recent move higher to $0.2288 saw a retracement to the 50% support level. After a retest of the $0.175 level, DOGE has bounced by 13.5%.
The market structure on the one-day chart was bullish, and the swing low to flip this around was at $0.167. The RSI refused to drop below neutral 50, highlighting the bullish outlook on the daily timeframe.
The OBV has also been in a steady uptrend since March, even after the retracement to $0.122. This showed steady buying pressure and supported the argument that more gains could follow.
The spot market demand was a concern
Source: Coinalyze
The Open Interest chart showed that the past five days saw an uptick in OI. This came alongside price gains. It suggested that sentiment was bullish and speculators were willing to go long on the meme coin.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
While the OBV was in a steady uptrend, the spot CVD trended in the opposite direction. The spot CVD saw a minor bounce in the past five days, but it was not enough to buoy the likelihood of strong, swift gains.
Traders would want to see a surge, like the one after 25th March, to gain confidence to go long on DOGE.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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