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Dogecoin (DOGE) bulls initiated a rally on September 28th after the price dropped to the demand zone. The popular meme token surpassed the local resistance at $0.063, but bears managed to quickly pull back in the last 24 hours.
Falling Metrics in DOGE!
In a previous analysis of Dogecoin on September 17th, it was stated that $0.06 was a strong support level. The report highlighted that if Bitcoin (BTC) showed a bullish trend, DOGE could rise above $0.064. However, the bears have proven their resilience in the past two days.
The Relative Strength Index (RSI) on the four-hour chart dropped below the neutral 50 level, indicating a downward momentum. The market structure was also bearish when the lowest level of $0.0617 on October 1st was surpassed.
The Directional Movement Index (DMI) signaled a strong downward trend with both the -DI and Average Directional Index (ADX) above the 20 mark. Taken together, the indicators and price movement emphasized the strength of sellers in the past few hours.
The Pressure of Bitcoin on Dogecoin!
In the daily chart, the meme token lacked a strong trend and has been moving in the range of $0.06-$0.0635 since September 10th. Therefore, according to experts, buyers can enter long positions on a breakout above $0.06 or surpassing the resistance at $0.064. Just a few hours before Bitcoin reversed its upward momentum at $28,500, Dogecoin was rejected at $0.0642. The pullback in BTC strengthened the selling pressure behind altcoins, including DOGE.
This situation was also reflected in the decrease in Open Interest (OI) when prices fell below $0.064 on October 2nd. The declining OI and prices indicated a decline in long positions and the courage of the downward trend. Additionally, the spot Cumulative Volume Delta (CVD) also experienced a decrease in the last 24 hours.
In conclusion, although Dogecoin surpassed the resistance at $0.063 on September 28th, bears caused a rapid pullback in the last 24 hours. Technical indicators are signaling a downward trend, and the pullback in Bitcoin is negatively affecting the performance of DOGE while the decline in open positions continues.
