DOGE has formed a bearish flag shape.Long positions suffer more liquidation
- DOGE has formed a bearish flag shape.
- Long positions suffer more liquidation.
Dogcoin has been in a state of price consolidation since April 22, 2023. It fluctuates between $0.0763 and $0.0816, and if the current market conditions continue, the horizontal structure may expand.
Before and after the Federal Reserve raised interest rates, the volatility in the cryptocurrency market intensified. During the same period, Bitcoin [BTC] fell from $30000 to $276700, but then slightly increased to $29000, but was once again rejected.
Bearish flag - will sellers gain more advantages?
As of the time of publication, the value of DOGE was $0.07697, and bulls attempted to ensure that the lower limit of the range was close to $0.0763. It is worth noting that RSI has been below the 50 mark since the end of April, while OBV (balanced trading volume) is still below $500 billion.
In addition, the price trend is below the moving average (50EMA and 100EMA) and forms a bearish flag - reaffirming the current leverage of sellers. Therefore, bearish breakthroughs cannot be overturned, especially if BTC falls below $28000.
Such a move may cause DOGE to fall to the fluctuating low of $0.06250 in March and January in the coming days/weeks. If it further falls below this critical support level in the first quarter of 2023, DOGE may hit the bearish target of $0.05828 based on flagpole height.
The daily closing above the 50 and 100 moving averages will confirm structural strengthening. Such an increase will invalidate the bearish argument, especially if BTC recovers $30000. However, the upward trend may cause DOGE to rebound to the first quarter Price ceiling near $0.09500.
More multi position clearing
According to Coinglas data, long positions worth over $1 million were destroyed on May 6th, while short positions were only $9300.
At the time of writing, over $31000 of long positions were liquidated, while only $4000 of short positions were cleared. This trend indicates that the selling pressure in the futures market is increasing, and if it persists, it may lower the price of DOGE.
In addition, the volatility of financing interest rates has intensified in the past two days - volatile demand may thwart the efforts of bulls. But if BTC recoupes $30000, the target for the long position of DOGE may be $0.09500.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
