Despite Dogecoin’s recent struggles and the market correction that halted its hike to $0.29, traders have remained bullish on the coin. Despite being stuck between $0.18 and $0.22 for some weeks, Dogecoin’s price has now dropped to $0.17 after a 13% fall, attributed to Bitcoin’s decline of over 5% in the last 12 hours. However, traders have not been deterred by this price movement, as indicated by the Long/Short ratio of 1.02, showcasing a strong bullish sentiment.
Even though bullish sentiment remains high, other indicators suggest that Dogecoin may not be ready to break out of its tight trading range just yet. Analysis of Open Interest (OI) reveals that buyers have been more aggressive than sellers, with Dogecoin’s OI at $1.29 billion despite the recent market correction. This stability in net positioning by traders amidst market volatility may indicate minimal impact on price outside of external factors. If OI holds and the market stabilizes, Dogecoin could potentially resume its uptrend towards surpassing $0.20 and later, $0.25.
From a technical standpoint, the DOGE/USD chart has shown weakened momentum, with the Relative Strength Index (RSI) falling below midpoint at 0.50 and the Parabolic SAR’s dotted markers shifting above the price candles, signaling a bearish outlook. While Dogecoin has the potential to reverse its downtrend and break out of consolidation if the market stabilizes, it is expected to continue trading within its current price range in the coming days. The potential for a bullish breakout in the market, coupled with increased capital flow and a possible tweet from Elon Musk, could be catalysts for a price hike in Dogecoin.
