Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The selling pressure could see DOGE sink below the $0.06 support.
- Sellers increased their positions on the futures market.
Despite Dogecoin [DOGE] With the $0.06 support bouncing back, intense selling pressure could see bears break the support level. This level has been key for bulls over the past month, with buyers holding firm to resist the bearish advance.
Read Dogecoins [DOGE] Price forecast 2023-24
Even though the broader crypto market was green with Bitcoin [BTC] DOGE bears, trading above $27.5k, could break the bullish resilience near the $0.06 support in the near term.
Can bears reverse the support level on the fourth try?
Source: DOGE/USDT on Trading View
Support and resistance levels are established price zones with many buy and sell orders. They generally serve as critical levels to watch out for during a bullish rally or a bearish downtrend.
The $0.06 support level has been a strong point for buyers since early June. Despite DOGE’s bearish price action since late July, the support level has been firmly held to limit the bearish downtrend.
However, the recent multiple retests of the support level have highlighted the weakening structure, with the bears poised to benefit. The Relative Strength Index (RSI) fell below neutral 50 to underline the selling pressure in recent hours.
Similarly, On Balance Volume (OBV), which was on an upward trend in October, showed a decline in trading volume.
So, sellers could move below $0.06 with a short-term target of $0.055. If buyers hold the support level again, $0.064 to $0.067 will be the short-term target for bulls.
Shorts dominated the futures market, while longs posted huge losses
Source: Mint glass
Sellers took advantage of the selling pressure by taking more short positions on the futures market. At the time of writing, short positions worth $46.04 million accounted for a 52.02% share of open contracts.
How much are 1,10,100 DOGEs worth today?
As a result, buyers have experienced more liquidations in the past day.
This highlighted market participants’ willingness to push DOGE prices below $0.06 in the near term.