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In the past few days, Dogecoin has faced some resistance below the $0.09 mark. The lack of buying volume suggests that bulls are not in control, and a breakthrough has yet to occur.
Dogecoin has been steadily rising over the past ten days. A recent report by AMBCrypto indicated a significant amount of DOGE has been moved to Robinhood, a centralized exchange. This has exacerbated concerns about selling pressure.
According to the 12-hour price chart, DOGE shows a bullish tendency, but it faces resistance from Fibonacci retracement levels. Will the bulls be able to break through soon?
Checking Fibonacci Levels
At the beginning of January, the price dropped from $0.094 to $0.075, forming a set of Fibonacci retracement levels (Fibs). The report indicates that throughout 2024, the 78.6% and 61.8% levels at $0.09 and $0.087 have been resistance levels.
Following the increase in February, the market structure has remained bullish. The RSI has been above the neutral 50 for the past ten days, highlighting buyer dominance. However, the OBV does not agree with this finding.
Recent highs are marked in orange on the OBV indicator. As of writing, the readings are not ready to climb above the marked levels. This suggests that despite the increase in February, buyers may not have the strength to break the $0.09 resistance.
On-chain indicators show weakening sentiment
Despite Dogecoin's upward trend in February, its weighted sentiment has been trending downward. It has been in negative territory for most of February. Additionally, the number of active addresses has sharply declined over the past two weeks.
Reality Check: Dogecoin's Market Cap in BTC Terms
Overall, this suggests that demand for Dogecoin may not be sufficient to establish an uptrend beyond $0.09. Dormant circulation has not recently seen any significant peaks.
A sharp surge would be a sign that selling pressure may be imminent. |
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Post time 25-2-2024 20:38:54