The lower time frame structure of DOGE is bearish on the chart.The support area of $0
- The lower time frame structure of DOGE is bearish on the chart.
- The support area of $0.071 may experience a slight bullish reaction.
The high time frame price chart of Dogcoin [DOGE] shows strong bearish pressure on one of the most popular meme coins. Since early March, the $0.08 region has posed severe resistance, and this situation seems unlikely to change soon.
Bitcoin [BTC] may experience some fluctuations after falling to $26500 on March 27th. In this situation, the rebound of DOGE will provide short sellers with a better risk return area to sell dog coins.
Breaking below the support level of $0.071 may open the door for short-term short positions
Short term bears can be wary of two situations. One is to fall below the $0.071 range, highlighted in cyan. This will be a strongly bearish scenario, where bears can use retesting of the region as resistance to short. They can position the support area at $0.068 and $0.065 to profit. An extremely wide stop loss can be used above the recent Monday swing high.
The blue line of $0.0713 marks a strong lower time frame support area for DOGE. The second possible scenario is to rebound from the region to the $0.075- $0.078 range.
Entering this area can also be short selling, with a stop loss above $0.0805. This can provide better R: R trading, and if sellers are willing, they can profit in the support area.
Since March 24, the Relative strength index (RSI) on the two-hour chart has not risen above the neutral 50, which highlights the recent downward trend. The CMF is also -0.10, indicating a significant outflow of funds from the dog coin market.
Reduction in open positions after Monday's wave
The dog coin hit a fluctuating high of $0.0764 on Monday and fell to a support level of $0.0713 a few hours later. This constitutes a 6.7% decline, with futures traders continuing to wait or lose money.
After this move, the open position surged from $261 million to $243 million, and Coinalyze's data shows that a long position worth $1.6 million was cleared within these two hours. However, the predicted funding interest rate is positive, indicating a slight bullish outlook. Overall, the inference is bearish sentiment towards DOGE.
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