Dogecoin Bulls May Drive Potential Reversal of March Losses
The Dogecoin Bulls may drive the potential reversal of March losses. For the past five days, the Dogecoin DOGE has experienced a significant increase in its prices. It gained around 25% value and raise from its lowest point of $0.0625.
There was an overall bullish sentiment around the entire cryptocurrency market. This also coincides with the positive development of Dogecoin following Bitcoin’s rapid price surge above the $22k range on Monday.
Not only that the price surge continued till Bitcoin’s price hiked to $25,500, surpassing its major resistance. this ultimately indicates a bullish trend for cryptocurrency. However, investors should still be careful as a such sharp hike in price can sometimes lead to a significant retracement before the next price surge.
A change in bias was indicated after breaking through two lower highs
Dogecoin experienced a sudden reversal in the price direction as it broke through a bearish barrier on the daily timeframe. There were various bullish signals for instance the trading volume also increased during the upward trend. The Awesome Oscillator – which indicates momentum – was above zero. Not only that it was still climbing which indicated a very strong bullish momentum.
The Directional Movement Index also indicated an uptrend, with the -DI (red) falling below the 20 mark and the +DI taking its place. The ADX (yellow), which measures trend strength, was also above 20, indicating a significant uptrend on the 4-hour chart.
Furthermore, Based on the market structure one may deduce to some extent that Dogecoin has been able to break through two of its recent lower highs. This indicates that the coin was able to transform the bearish structure into a bullish one. The price also retested the support level of $0.073 almost perfectly before continuing to climb higher
Right now the resistance point is $0.08 which was also a supporting point by mid-January. It might even attract more sellers. However, this area could open up buying opportunities in the market if revisited.
The influx of capital may be expected if Dogecoin’s value increases
Over the past few days, the 15-minute chart for Dogecoin has revealed alternating periods of consolidation and expansion on the lower timeframes. During these periods, the price chart also experienced a decline in Open Interest (OI) whenever there was a pullback in the price. Moreover, with an uptrend in the price, there was a corresponding surge in OI. These patterns in OI indicate strong bullish market sentiment for DOGE.
