DOGE’s Recent Rally Fails to Shake Bearish Sentiment
Dogecoin (DOGE) experienced a 16% rally a few days ago, but this failed to change the overall bearish sentiment in the market. Despite the brief surge in prices, the cryptocurrency showed strong signs of a bearish trend reversal. Over the past ten days, DOGE’s market structure and momentum pointed towards continued losses of 12% to 22%.
Analysis: Dogecoin Shows Strong Signs of Bearish Reversal
The recent surge in DOGE’s price was largely fueled by a baseless assertion that Kabuso, the Dogecoin mascot, had passed away on January 10th. However, AMBCrypto verified that this was not the case, highlighting the importance of social metrics when evaluating the memecoin’s price movements. Despite the short-lived rally, the market structure and momentum displayed by DOGE indicated a bearish bias.
Debunking the Rumor: Kabuso, the Dogecoin Mascot, is Not Dead
The false news about Kabuso’s demise had a significant impact on DOGE’s price, leading to a temporary spike. However, it is crucial to rely on accurate information and verify any claims before making investment decisions. In this case, AMBCrypto confirmed that the news was baseless, emphasizing the importance of fact-checking in the cryptocurrency market.
Volatility Returns as DOGE Struggles to Break Resistance
An analysis of the 12-hour price chart revealed that the $0.085 region had previously acted as a strong resistance in mid-November. In early December, this region was converted to a support level and successfully defended for a month. However, a sharp sell-off on January 3rd turned this area into a supply zone once again. Despite attempting to breach the $0.087 mark, the bulls failed, and the market structure and momentum suggested a dominant bearish trend.
Spot Buying Offers Potential for DOGE to Bounce Back
Although DOGE’s market has shown signs of bearish sentiment with declining Open Interest in futures contracts, there has been a minor upward jump in spot CVD since January 9th. This indicates a demand for DOGE and could entice futures traders to enter the market, potentially driving prices higher. Key resistance levels to watch in the lower timeframes are $0.08188 and $0.0835.
Disclaimer: The information presented in this article is solely the opinion of the writer and does not constitute financial, investment, trading, or other types of advice. It is important to conduct thorough research and analysis before making any investment decisions.
Analyst comment
Neutral news: DOGE’s Recent Rally Fails to Shake Bearish Sentiment
Short Analysis: The recent rally in DOGE’s price was driven by a false rumor, leading to a temporary spike. However, the overall market structure and momentum indicate a bearish trend. The spot buying activity offers some potential for a bounce back, but careful research and analysis are advised before making any investment decisions.
