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- Due to sales pressure, DOGE could break the compact range.
- Due to lack of demand in the futures market, Spot CVD continues to decline.
Dogecoins [DOGE] traded within a compact price range for the past three weeks. The price fluctuated between the low range of $0.0632 and the high range of $0.0700.
However, a range breakout seems imminent, especially with Bitcoin [BTC] undergo a price correction. DOGE reported a 2.1% loss in the past 24 hours. This suggested that the breakout could be a bearish one.
Realistic or not, here is DOGE’s market cap in BTC terms
Sellers are about to break below a key support level
Source: DOGE/USDT on trade view
DOGE’s market structure on the higher and lower time frames has been bearish since early April. The break of the key support level of $0.0632 on June 10th caused the price to drop to a new year low. However, the bulls slowly recovered to dampen the selling pressure.
Despite the bullish rebound, buyers found it difficult to gain momentum due to selling pressure at the $0.0700 resistance level. This left DOGE stuck in a compact price range, even though the chart’s indicators pointed to a possible bearish breakout.
The Relative Strength Index (RSI) has been below the neutral 50 since July 5. As of this writing, it was on a dip, highlighting easing buying pressure. On-Balance Volume (OBV) was mostly flat, which could be significant for bears.
On a successful bearish breakout, bears will target the October 2022 low of $0.0582. Alternatively, if BTC climbs back above USD 31,000, bulls could trigger a surprise rally from the current support level.
Open Interest hinted at a bearish sentiment in the market
Source: Coinalyse
Dates from Coin analysis showed that the Open Interest is in a downward trend after a sharp drop on July 5. This showed confluence with the RSI, which also remained below the neutral 50 during the same period.
How much are 1,10,100 DOGEs worth today?
The aggregate Spot Cumulative Volume Delta (CVD) also continued to plummet amid swings in the funding rate. This indicated a market sentiment title in favor of a bearish breakout for DOGE.