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Dogecoin (DOGE) is currently confined within a narrow trading range, indicating a possible bearish breakout may be imminent. Sellers in the derivatives market have established short positions, holding a significant 52.66% lead over long positions. This analysis explores the present condition of DOGE’s price movements and their implications for the cryptocurrency market.
DOGE has remained within this range for several weeks, consistently resisting any breakout attempts. The price has fluctuated between the 23.6% and 38.2% Fibonacci retracement levels since August 18th. Neither the bears nor the bulls have established dominance, resulting in a climate of uncertainty for both traders and investors.
Compounding the overall market stagnation, Bitcoin (BTC) has been trading between $25.6k and $26.4k, further contributing to the prevailing sideways trend across the cryptocurrency landscape.
A detailed look at DOGE’s historical price movements reveals a recurring trend. The meme-based cryptocurrency typically experiences prolonged sideways trading before undergoing a significant price shift. Currently, DOGE’s price action appears to be adhering to this established pattern.
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According to the latest data, bears are solidifying their position. The Relative Strength Index (RSI) remains below the neutral 50, suggesting a deficiency in buying pressure. Additionally, the On Balance Volume (OBV) has decreased by over 2 billion in the last 48 hours, indicating a potential bearish breakout on the horizon.
If the bears continue to dominate in the upcoming days, DOGE could potentially decline to the $0.055 price level, which corresponds to year-to-date lows observed in June and August. On the other hand, a revival of bullish sentiment in the broader market and heightened DOGE speculation could trigger a rebound, with possible price targets ranging from $0.066 to $0.07.
Importantly, futures traders have aligned with the increasing bearish sentiment. Data from Coinglass reveals that shorts currently account for 52.66% of open contracts, reflecting a $5 million gap between long and short positions. This notable difference highlights the market’s anticipation of DOGE moving downward.
In summary, Dogecoin’s price movements have been marked by sideways trading, with bears gaining traction in the derivatives market. The possibility of a bearish breakout is on the horizon as we closely observe DOGE’s path. Traders and investors should remain vigilant and monitor key support and resistance levels as DOGE navigates this pivotal phase.
The post DOGE Price Analysis: Bearish Breakout Looms as Sellers Gain Advantage appeared first on BitcoinWorld.
