According to TradeView, Dogcoin [DOGE] plummeted by 5.4% on May 8th, causing a bearish break from its previous price consolidation range (yellow)
According to TradeView, Dogcoin [DOGE] plummeted by 5.4% on May 8th, causing a bearish break from its previous price consolidation range (yellow). Since hitting the Price ceiling of nearly $0.1000 on April 18, DOGE has been falling.
Overall, since the second half of April, the meme has depreciated by over 20%. As of the time of publication, its trading price was $0.07274. If low trading volume and bearish sentiment persist in the coming days/weeks, sellers may receive more support.
Will the support of $0.06824 prevent a decline?
The bullish order block (OB) formed on January 1st was $0.06824, which has been a key support area (cyan) for the past four months. It checked for a similar sharp drop in mid March. However, retesting support will mean that DOE has eliminated all the gains made in the first quarter of 2023.
As of the time of publication, the price trend has exceeded the lower limit of the range, giving sellers more advantages. The decline also caused the FVG (Fair Value Gap) to be within the range of $0.07303 to $0.07610. DOGE may take a step down to the bullish OB of $0.06824 before rebounding.
On the contrary, a bullish Bitcoin [BTC] may prompt bulls to regain ground and move up to the previous trading range of $0.07599 to $0.08269.
However, such an increase and any move towards $0.1000 would require filling the FVG region in order for bulls to gain leverage.
Meanwhile, the RSI fell to a lower range - indicating an increase in selling pressure. Similarly, the movement of CMF (Chaijin Capital Flow) south to below zero indicates that more funds are flowing out of the DOGE market.
Decreased trading volume and sentiment
According to Santiment, DOGE's last optimistic sentiment was on April 20th, with a trading volume of $1.99 billion. Afterwards, both sentiment and trading volume decreased.
As of press time, the trading volume was less than 500 million US dollars, while market sentiment fell further to negative areas.
In addition, the financing interest rate turned negative and reiterated bearish pressure during the press release. If the trend continues, DOGE may fall and retest the bullish OB (cyan).
Thank you for reading. See you next time!
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