On Monday, October 9th, the price trend of DOE caused memecoin to fall below the $0.06 mark, flipping it into the resistance zone
On Monday, October 9th, the price trend of DOE caused memecoin to fall below the $0.06 mark, flipping it into the resistance zone. Will sellers consider short selling?
- DOE fell below the bullish order range
- This may pave the way for further losses in the short term
Dogcoin [DOGE] experienced a strong wave of selling on October 9th, with prices breaking through demand areas that can be traced back to June. This is not a good omen for long-term buyers as it highlights the exhaustion of the bulls.
AMBCrypto's dog coin technology analysis report released on October 5th pointed out that a firm bearish market sentiment may lead to bearish positions breaking through this support area. This has proven to be true, and now traders can look for short selling opportunities.
The breakthrough in bullish order blocks provides an ideal short selling opportunity for bears
The red box indicates the top H4 bullish order blocks within the $0.06 area. The price trend on Monday (October 9th) caused the meme coin to fall below the region, flipping it into a bearish breakthrough block. This move also foreshadows the next development direction of DOGE.
Based on the rebound at the end of September, a set of Fibonacci retreat levels (light yellow) were plotted. Before the seller forced a pullback, this rebound rose from $0.0593 to $0.0642. The inability to maintain the 78.6% pullback level of $0.0604 means that the Dog Coin may fall to the 23.6% and 61.8% southward extension levels.
Therefore, traders can establish short positions after retesting bearish breaks. In October, the Relative Strength Index (RSI) showed a strong downward trend, and the Comprehensive Trading Volume (OBV) also showed a downward trend. They collectively reflect the bearish dominance of the past ten days.
Traders expect further decline in dog coins
From October 5th to 9th, the cumulative spot trading volume Delta (CVD) remained relatively flat, but plummeted on Monday (October 9th). Meanwhile, Bitcoin [BTC] fell to the $27400 mark. The Open Interest Contracts (OI) chart also shows a steady decline in holdings within the 24 hours prior to publication.
The decrease in holdings indicates a setback for bullish futures markets and triggers bearish sentiment. In addition, the insufficient demand in the spot market is a concern. Therefore, the expectation of further decline in dog currency is reasonable. Short sellers must be wary of the rebound in Bitcoin, as it may quickly change market sentiment and break the bearish structure.
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