Going long on Dogecoin [DOGE]? Here’s what you need to know

  • DOGE was strongly bullish 
  • It faces a bearish order block across the 100% Fib stage ($0.10790)
  • Declining growth exercise and damaging sentiment may undermine additional near-term value restoration

Dogecoin’s (DOGE) value rally started on 22 November after BTC reclaimed the $16,000 stage, and on the time of writing, it resulted in a value enhance of over 40%.

At press time, DOGE was buying and selling at $0.10649, up 3% within the final 24 hours.  

However, it confronted an necessary bearish order block across the 100% Fib stage. If the bulls of DOGE preserve upward momentum, a bearish breaker may shatter the present resistance and goal $0.11652. 

Double resistance on the 100% Fib stage and a bearish order block

Source: TradingView

DOGE confronted two carefully spaced obstacles within the 4-hour time-frame. One was the quick bearish order block zone, and the opposite was the 100% Fib stage. Can the bulls breakthrough each on the identical time? 

The technical indicators on the 4-hour timeframe recommend that the bulls may break by these obstacles. In explicit, the Relative Strength Index (RSI) was at 66 after avoiding the impartial 50-level and persevering with to rise. This reveals the bulls have an excessive amount of leverage and will transfer on with the uptrend momentum. 

At press time, the on-balance quantity was additionally supporting the bulls of their ahead momentum. It moved steeply greater regardless of a slight sideways motion. It confirmed that buying and selling volumes have elevated, which provides the bulls sufficient shopping for strain to overcome the 2 obstacles.

Thus, if the uptrend continues, DOGE may see a bearish breaker and breach the 100% Fib stage ($0.10790). 

However, a break beneath the present help on the 78.6% Fib stage ($0.10010) would invalidate the above bias. In that case, the bulls may discover new help on the $61.8% stage ($0.09396).

DOGE recorded damaging sentiment and a decline in growth exercise

1669829545 463 Going long on Dogecoin DOGE Heres what you need to

Source: Santiment

That mentioned, DOGE recorded a gentle enhance in growth exercise from 21 November, which peaked on 28 November. During the mentioned interval, the costs of DOGE additionally elevated. However, the decline in growth exercise on the time of publication additionally coincided with weighted sentiment sliding deeper into damaging territory.  

Although DOGE has risen regardless of the continued damaging sentiment up to now, the decline in growth exercise may stop additional value appreciation. The BTC’s efficiency may additionally have an effect on the worth efficiency of DOGE, so buyers ought to hold an eye fixed on it. 

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