- Dogecoin has a bullish market structure and is likely to rise further next week.
- The indicators and trading volumes did not fully support the bullish trend.
Dogecoin [DOGE] Forming a descending wedge pattern Bullish breakout From there, another analysis perspective It showed that a breakout has already occurred.
Either way, prices have stagnated over the past week, erasing some of the previous gains.
Nevertheless, the bullish market structure remained strong on the daily chart. Things were not that simple and the bulls had a big challenge ahead of them.
The first one is the volume
DOGE/USDT chart. Source: TradingView
Market structure remains bullish after the structural breakdown earlier this month. The meme coin has not made a new low since then. The RSI has also managed to rise above the neutral level of 50, albeit just barely.
Taken together, these indicate that bulls still have a chance to push prices higher.
However, trading volumes were very low throughout July, making it difficult to gain bullish conviction even when prices began to rise mid-month.
The OBV reflected this fact with a modest rebound in July, before weakening again in recent days.
sauce: Into the Block
The $0.119–$0.123 zone is currently the biggest support zone while $0.139–$0.143 is the biggest resistance zone. A retest of the $0.12 support level might occur, which might present a buying opportunity given the bullish structure on the daily chart.
Dogecoin is still undervalued, should you buy it?
sauce: Santiment
The average age of an invested dollar continues to trend upwards, which means investments are stagnating and older coins are continuing to sit in your wallet.
Generally, declines in the MDIA coincide with strong upward trends, as we saw in late February.
The 90-day MVRV ratio indicates that DOGE remains undervalued despite the recent bounce, which is encouraging as it reduces the chances of a wave of profit-taking selling.
sauce: Santiment
The 10M-1B coin holders (blue and orange) had been hoarding DOGE in early July. Soon after, they began taking money out of the bags, signaling a loss of confidence in the token.
read Dogecoin [DOGE] Price Prediction 2024-25
Heavy selling combined with a lack of trading volume made any significant upside unlikely.
a Bitcoin [BTC] In these circumstances, especially BTC-DOGE Correlation It was +0.95.
