Connect with us
Active Currencies 14880
Market Cap $2,227,052,547,215.50
Bitcoin Share 50.92%
24h Market Cap Change $1.39
Analysis

Will Dogecoin fall below the $0.06 support level?

2min Read

Despite DOGE bouncing off the $0.06 support again, the intense selling pressure could see the support level broken by bears.
Posted:
Avatar
editors
Can Dogecoin breach the $0.06 support?
Avatar
editors
Posted:

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Selling pressure could see DOGE sink below the $0.06 support.
  • Sellers increased their positions in the futures market. 

Despite Dogecoin [DOGE] bouncing off the $0.06 support again, the intense selling pressure could see the support level broken by bears. This level has been critical for bulls over a month-long period, with buyers standing firm to resist the bearish advance.

Read Dogecoin’s [DOGE] Price Prediction 2023-24

Even though the wider crypto market was green with Bitcoin [BTC] trading above $27.5k, DOGE bears could break the bullish resilience at the $0.06 support in the short term.

Can bears flip support level on the fourth attempt?

Source: DOGE/USDT on Trading View

Support and resistance levels are established price zones with a lot of buy and sell orders. They usually serve as critical levels to watch out for during a bullish rally or a bearish downtrend.

The $0.06 support level has been a stronghold for buyers since early June. Despite DOGE’s bearish price action since late July, the support level has held firm to limit the bearish downtrend.

However, the recent multiple retests of the support level highlighted the weakening structure, with bears poised to take advantage. The Relative Strength Index (RSI) dipped under the neutral 50 to underline the selling pressure in recent hours.

Similarly, the On Balance Volume (OBV), which had been on an uptrend in October, showed a drop in trading volume.

Hence, sellers could break below $0.06 with a near-term target of $0.055. Alternatively, if buyers hold the support level again, $0.064 to $0.067 will be the short-term target for bulls.

Shorts dominated the futures market, with longs registering huge losses

Source: Coinglass

Sellers leveraged the selling pressure by taking up more short positions in the futures market. As of press time, short positions worth $46.04 million accounted for a 52.02% share of the open contracts.

How much are 1,10,100 DOGEs worth today?

As a result, buyers have experienced more liquidations over the past day.

This highlighted the willingness of market participants to ride DOGE down to sub $0.06 prices in the short term.

 

Previous:
Next:

Share

Avatar
Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.