Dogecoin bulls look to force a move toward $0.07, will they succeed

Posted: September 1, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• Dogecoin flipped its lower timeframe market structure bullishly.
• The influx of demand in the spot market was an encouraging sign.

Dogecoin [DOGE] saw some positive developments on the price front over the past 48 hours. It lacked a strong trend on the higher timeframes such as 1-day, but it could see a small bounce in the coming days.

How much are 1, 10, or 100 DOGE worth today?

This move was initiated after the bounce above the $0.066 level which flipped the lower timeframe structure. There was also a confluence of factors that suggested Dogecoin could gain close to 10% soon.

The $0.066 resistance from the past two weeks was retested as support

Source: DOGE/USDT on TradingView

The $0.06 region has been an important support since March. In the past two weeks, the bulls fought to defend this area and succeeded in driving prices past the short-term resistance at $0.0645-$0.0662. Moreover, DOGE retested this zone and was in the process of bouncing higher.

The market structure on the 4-hour chart was bullish after this development, and the RSI also showed strong upward momentum. Conversely, the OBV has been flat, which hinted at a lack of strong demand.

To the north, there was a sizeable imbalance at the $0.07 region demarcated in white. Additionally, this zone coincided with a resistance zone from June. Hence, it represented a logical take-profit target for bulls who entered near the $0.065 mark.

This bullish idea would be invalidated if Dogecoin falls below the $0.062 level. The price was already above the $0.066 mark, so traders must combat FOMO and wait for a retest of the support to look for buying opportunities. It was also possible that DOGE could continue to rise higher to $0.072 without another dip.

Realistic or not, here’s DOGE’s market cap in BTC terms

Bullish sentiment was growing in the past 12 hours

Source: Coinalyze

The Open Interest rose from $229 million to $244.9 million in the past 12 hours as Dogecoin prices climbed from the $0.065 level. It signaled bullish sentiment and buyer conviction in the near term as speculators entered the market betting on further gains.

Their odds of success were heightened by the rise in spot CVD over the past 24 hours, which was a sign of strength from the bulls. It hinted that they could drive prices toward the $0.07 resistance.