Dogecoin Faces Resistance Below $0.09 Amidst Lack of Buying Volume
Dogecoin, the popular cryptocurrency, has encountered resistance below the $0.09 mark in the past few days. The lack of buying volume has indicated that bulls are not dominant, and a breakout is not yet on the horizon.
Steady Gains and Selling Pressure Concerns as DOGE Moves to Robinhood
Over the past ten days, Dogecoin has experienced steady gains. However, concerns over selling pressure arose as a significant amount of DOGE was moved to the centralized exchange Robinhood. This move fueled worries among investors.
Fibonacci Retracement Levels and Resistance at $0.09
An analysis of the 12-hour price chart revealed that DOGE has a bullish bias. However, it is facing resistance from a Fibonacci retracement level. The retracement levels set from the early January price drop highlighted that the $0.09 and $0.087 levels, corresponding to the 78.6% and 61.8% levels respectively, have been acting as strong resistance during this period.
Market Structure Remains Bullish but OBV Disagrees
Despite the resistance, the market structure of Dogecoin has been bullish, with gains made and the RSI (Relative Strength Index) consistently above the neutral 50 level, indicating buyer dominance. However, the On-Balance Volume (OBV) did not support this finding. The recent highs indicated by the OBV indicator suggested that it was not ready to surpass those levels, signaling that buyers might not have enough strength to break the resistance at $0.09.
Lower Weighted Sentiment and Decreased Active Addresses Count Raise Concerns
While Dogecoin has been trending higher, its weighted sentiment has been trending lower, remaining in negative territory for the majority of the time. Additionally, the count of active addresses has significantly decreased over the past two weeks. These factors raise concerns about the demand for Dogecoin and its ability to establish an uptrend beyond the $0.09 mark.
Conclusion: Lack of Significant Spikes in Demand and Potential Selling Pressure
The recent lack of notable spikes in demand for Dogecoin suggests that the demand might not be high enough to push the cryptocurrency beyond the $0.09 resistance level. Additionally, the dormant circulation of DOGE has not experienced any significant changes. A large spike in circulation would indicate impending selling pressure.
Analyst comment
Positive news: Dogecoin noted steady gains over the past ten days, with a bullish bias based on the 12-hour price chart.
Negative news: Dogecoin faced resistance below the $0.09 mark and there were fears of selling pressure due to a significant amount of DOGE being moved to Robinhood.
Neutral news: The market structure has been bullish, but the OBV did not agree with the buyer dominance indicated by the RSI. Weighted sentiment and active addresses count have trended lower.
Market outlook: Due to the resistance faced and lack of buying volume, it is unlikely that Dogecoin will break the $0.09 resistance in the near term. The demand may not be high enough to establish an uptrend.
