• Dogecoin [DOGE] has retraced most of its 8% gains from last week.
• The market structure and momentum were bearish in the near-term, but bullish on higher timeframes.
• Bearish sentiment still dominated the futures market, with both price and open interest sliding lower.
Dogecoin Price Retraces Most Gains
Dogecoin [DOGE] rallied 8% last week, going from the 7 August low at $0.0717 to $0.07745 on 12 August. Since then, it has retraced most of its gains. The momentum of the meme coin signaled further downside was possible.
Bearish Sentiment In Near-Term
Dogecoin was bearish in the near-term but bullish on higher timeframes. DOGE traders can go for scalp short trades if the price falls below the near-term support, targeting $0.07. The RSI showed bearish momentum as DOGE neared the support level at $0.07325 while overhead levels represented strong resistance around $0.0797 and $0.076 respectively.. The market structure of DOGE was bearish once more after it slipped below the $0.075 mark on 14 August yet buying pressure slightly increased as seen by a slowly climbing On Balance Volume (OBV).
Futures Market Dominated By Bears
In the past three days, both the price and Open Interest have slowly slid lower indicating bearish sentiment prevailing in the futures market while spot CVD trended downwards reflecting dominance of sellers over buyers . This pointed towards a potential 5% drop in DOGE’s value soon .
Wait For Lower Timeframe Breakout To Buy
Bulls can wait for a lower timeframe market structure break to find buying opportunities if there is an influx of buyers following a drop towards$ 0 . 069 – 0 . 072 . With a bullish breaker block present on 3 day chart , buyers should be cautious about entering too early as they risk missing out good entry points if prices continue to fall beyond expected levels .
Conclusion
Dogecoin had some demand yet another drop toward $0 . 07 was still likely due to current bearish sentiment with little sign of abating anytime soon . Bulls should wait for a solid break above overhead resistance before entering any long positions or alternatively look for lower timeframe breakouts after falling prices attract buyers back into markets
