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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Dogecoin has benefited greatly from the flow of capital into the altcoin market in recent times.
- Technical analyzes showed that the recent dip to a support level opened the way to a new step higher.
Dogecoin [DOGE] strongly exhibited social activities alongside the other popular meme coins Shiba Inu [SHIB] and Pepe [PEPE]. Still, there were some signs that the uptrend for DOGE and the other meme coins might be slowing.
AMBCrypto’s technical analysis of DOGE noted that long-term trendline resistance was tested on November 3. Since then, this resistance has been defeated and the bulls were ready to push prices higher.
Placing bullish bets on Dogecoin was feasible after the recent retest of a former resistance
Source: DOGE/USDT on TradingView
The market structure on the three-day chart was bullish after the move above $0.06858. Additionally, volatility retested at the same level as support in the hours before press time.
Moreover, the trendline resistance can also be considered support.
Both pieces of evidence increased the chances of DOGE making further gains. The RSI stood at 59, still indicating strong bullish momentum.
On-Balance Volume (OBV) has also not halted its upward trend as buying volume remained dominant. The Chaikin Money Flow (CMF) was also above +0.05, indicating buyer superiority.
To the north, the resistance levels at $0.0838, $0.095 and $0.106 were the next major points of interest.
Analysis of the short-term and long-term charts to determine DOGE’s next move
Source: Hyblok
The heatmap of liquidation levels has not changed much over the past week. However, more liquidations piled up in the $0.084-$0.0885 region.
This meant that market participants were betting that a rally above $0.083 was unlikely and were prepared to short DOGE. This liquidity could boost DOGE prices, at least briefly, before a bearish reversal occurs.
Source: Coinalyse
Due to the volatility in the last few hours, DOGE fell from $0.078 to $0.0663.
Is your portfolio green? Check out the DOGE profit calculator
During this dump, Open Interest (OI) fell by almost $80 million, reflecting strong bearish sentiment on the lower time frames.
It also pointed to over-indebted longs that wanted to take DOGE higher but were instead wiped out during the recent decline. Spot CVD lacked a solid trend in November, but a rise in this measure would strengthen the bullish case.