Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Bitcoin [BTC], along with the rest of the crypto market, had a good start to the week last Monday (May 29), but posted losses in the following days. Bitcoin fell nearly 6% while Dogecoin [DOGE] experienced a 4.7% decline to reach $0.0705 on Wednesday, May 31.
After that, there was some demand for the meme coin and prices rose to $0.0733. The trend in the higher time frame has been bearish for the past six weeks following the rejection at $0.095.
A series formation but the markets remained indecisive
Source: DOGE/USDT on TradingView
Price action on weekends rarely have strong trends and trading volumes are also likely to be lower than on weekdays. This was true for DOGE this weekend. Although the RSI was above the neutral 50, the market structure was not bullish.
Dogecoin has been trading within a range (yellow) since May. This range stretched from $0.069 to $0.075. In addition, there was near-term resistance at the $0.074 mark, which the DOGE bulls have not overcome since May 19.
Over the past week, the A/D indicator climbed higher to show an increase in buying pressure. But this was due to a wave of buying on Friday, June 2, which pushed prices above the $0.072 level.
This was an important resistance as it represented the mid range. Overall, Dogecoin lacked bullish momentum and is expected to see a bearish reversal around the $0.074-$0.075 resistance zone.
Bullish sentiment has been building over the past two days
Source: Coin analysis
While Dogecoin had no significant demand over the past two weeks, there was a slight uptick in buying pressure in June. Despite the repeated rejection at the $0.074 level, the bulls seemed poised to take another shot at it with renewed vigor.
Realistic or not, here is Dogecoin’s market cap in terms of BTC
From Thursday 1 June, the Open Interest has steadily increased. According to Coinalyze, it amounted to an increase of $18 million in contracts. Meanwhile, DOGE climbed nearly 3%. Together, it indicated a bullish sentiment in the market.
However, the spot CVD, which was in a downward trend at the end of May, saw only a small rebound on Friday and then remained flat.