DOGE held onto the level of $0.060, but the recovery was slow
- DOGE held onto the level of $0.060, but the recovery was slow.
- The open interest rate of DOE has fluctuated over the past four weeks. Dog coins remain stable at $0.060, but selling pressure still exists
Despite recent recovery, as of the time of publication, Dogcoin [DOGE] still faces significant selling pressure. As of the time of writing, the transaction price of Meme tokens was $0.0622, an increase of approximately 4% from the recent low of $0.059.
However, unless positive momentum is injected into next week's Federal Open Market Committee meeting, fluctuations in demand and an increase in short positions may undermine the economic recovery.
The following are the key target levels for Dogcoin
The Fibonacci pullback tool (yellow) is drawn between the July high of $0.0838 and the June low of $0.0530. According to the tool, bulls consistently maintained a 23.6% fib level of $0.0603 in June, August, and September.
During the period from mid August to mid September, DOE's comprehensive loss was above the 23.6% Fib level ($0.060). At the end of August, the false breakthrough of 50% Fibonacci level ($0.068) fell back to $0.060.
Therefore, if the Federal Reserve's decision on September 20th is moderate, the target for DOGE may be a 38.2% Fib level ($0.0648) or a 50% Fib level ($0.0684). Such an increase may even push DOGE towards obstacles near $0.075 (white), especially if Bitcoin [BTC] rebounds above $28000.
However, if the market falls and the daily closing price falls below the 23.6% Fibonacci level ($0.0603), it will weaken the market structure. In this case, depreciation to $0.0556 may be feasible.
At the same time, there has been a decrease in capital inflows into the DOGE market, as evidenced by the southward shift of Chaijin Capital Flow (CMF). In addition, the Relative Strength Index (RSI) has been in a low range since mid August, exacerbating the selling pressure of the past four weeks.
Due to fluctuating demand, short positions have increased
Futures market data confirms the bearish pressure in the spot market. Over the past three days, more players have been short selling against DOGE. This means they expect further declines in the future.
In addition, data from Coin An Futures shows that the interest rate of the DOE position has fluctuated above $74 million in the past four weeks (since mid August). This indicates that demand for DOGE has stagnated, which may expand the price consolidation to over $0.060.
However, the FOMC meeting will trigger fluctuations, with 38.2% and 50% Fib levels being key targets to consider.
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