Dogecoin's Price Action: A Deeper Look
Dogecoin [DOGE] saw a 19% retracement from its previous weekend high, presenting a buying opportunity for many. This dip also saw increased retail interest, evidenced by a surge in new on-chain addresses.
Dogecoin's Recent Price Movement
While a deeper correction remains possible, the Market Value to Realized Value (MVRV) ratio suggests DOGE is still undervalued. Let's examine the technical indicators:
- Low trading volume during the recent bounce: A cause for some concern.
- Long-term signals and 1-day structure: Indicate further upside potential for Dogecoin.
The daily chart reveals a bullish structure despite the minor retracement. The On-Balance Volume (OBV) shows an uptrend, but the rejection at $0.26 was accompanied by significant selling pressure, pushing the OBV below late February lows. A previous breakout beyond this level was bullish, but subsequent profit-taking has somewhat diminished its significance.
However, the Relative Strength Index (RSI) remains above 50, suggesting bullish momentum. Fibonacci retracement levels (based on the rally from $0.164 to $0.26) show support at the 50% retracement level of $0.212.
4-Hour Chart Analysis
The 4-hour chart shows a bullish market structure break after successfully defending the $0.212 support level. The move beyond the $0.229 resistance (marked in green) shifted the structure in favor of buyers.
Despite this bullish structure shift, the OBV hasn't surpassed its May 16th highs, indicating weak buying volume. This could lead to another dip towards $0.212 or lower.
Long vs. Short Analysis
Data from Coinglass shows nearly equal taker buy/sell volume, indicating a balanced, unbiased market sentiment in the short term. However, a significant 75% of accounts are holding long positions, a trend observed for the past month.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice.
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