Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- D1’s structure was bearish but could change if DOGE moves above the 50% Fib level.
- DOGE’s open interest rates improved and financing rates turned positive.
Memecoins then experienced a remarkable recovery From Bitcoin [BTC] foray into the $30k zone. Dogecoin [DOGE], a tier-1 meme coin, is up more than 9% in the past seven days, according to CoinMarketCap. It zoomed past the March low of $0.065, but bulls had to clear the 38.20% Fib level of $0.06906 to get more leverage.
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Will Bulls Advance?
Source: DOGE/USDT on TradingView
At the time of writing, the price action climbed above the 23.6% Fib level of $0.06292, but the D1 market structure was still bearish. If you move above the 50% Fib level of $0.074, the structure will turn bullish.
Meanwhile, Chaikin cash flow eased and registered a rebound above the zero mark, showing improved capital inflows into the Dogecoin market. Similarly, the Relative Strength Index was on the verge of crossing the 50 mark for the first time since late April. The RSI movement could experience some resistance at the 50 mark.
Thus, a slight pullback is likely to the 38.2% Fib level of $0.069 and could ease at the March low of $0.065 or 23.6% Fib level of $0.06292 before attempting to continue the recovery to make. These levels may provide new buying opportunities targeting the 50% Fib level ($0.074).
A close below the 23.6% Fib level ($0.063) invalidates the bearish position. Such a move could increase bearish intent and push DOGE down to $0.060 or $0.053.
Open interest and financing rates improved
Source: Coinglass
DOGE’s open interest (OI) rates, the total number of futures contracts at any given time, fell from >$300 million in early June to about $200 million in the second half of June. At the time of writing, the OI registered an uptick and climbed above $240 million, reinforcing bullish sentiment in the futures market.
How many Worth 1,10,100 DOGEs today?
Similarly, funding rates turned positive after BTC retested the $30,000 level, suggesting a likely further upside if BTC does not register any sudden losses in the coming days.
Source: Coinglass