DOGE Bulls Take a Step Back as the Breakout Peters Out
On September 28th, Dogecoin bulls had initiated a rally after the token had seen a drop to the demand zone.
This rally saw the meme token breach the local resistance level at $0.063, but the last 24 hours saw the bears drive a swift retracement in its price.
An earlier analysis had revealed that the $0.06 support level was a strong one for the largest meme token in the market.
The report indicated that if Bitcoin remained bullish, then it could drive DOGE to a value of $0.064, or even higher.
However, the last two days have seen Dogecoin bears show just how resilient they can be.
Another drop
The four-hour chart showed that there was a decline in the Relative Strength Index (RSI) below the 50 mark, which is considered neutral.
This indicated that bearish momentum was once more taking hold. In addition, the overall market structure also appeared to be bearish because the meme token breached the higher lows from October 1st at $0.0617.
There was also a strong bearish trend evident in the Directional Movement Index (DMI) with the Average Directional Index (ADX) and the DI both rising above the 20 level.
When put together, the price action as well as the indicators all pointed towards the strength of the sellers in recent hours.
The one-day chart showed that there was no firm trend evident in the meme token and since September 10th, it has been oscillating between $0.06 and $0.0635.
Therefore, buyers have the option of entering a long position at the $0.06 price, or they could do so when the token surpasses the resistance at $0.064.
Bullish sentiment wanes
Just a couple hours before Bitcoin saw its bullish momentum reverse at the $28,500 level, there had been a rejection in the price of Dogecoin at $0.0642.
The bearish pressure associated with altcoins had been reinforced after Bitcoin had undergone the pullback and this also applied to Dogecoin.
This was apparent on October 2nd, when there was a decline in the Open Interest (OI), as there was a drop in the original meme token’s price from the $0.064 area.
The falling prices and OI indicated bearish sentiment and discouraged longs. Furthermore, the last 24 hours also saw a downturn in the spot Cumulative Volume Delta (CVD).
No triggers
The leading meme token in the market has been facing price struggles for quite some time now and this is due to the lack of triggers.
There are no changes in its fundamentals that could drive up the DOGE price currently, or even in the near future.
It is overall market sentiment that is currently influencing the price of the meme coin and is expected to continue doing so.
