Dogecoin Gains 7%, But Bearish Trend Still Intact: Shorting Opportunity Ahead.

• Dogecoin has posted 7% gains since 31 December, but its higher timeframe charts remain bearish.
• Trading volume has been in steady decline since mid-December and unless DOGE can reclaim $0.078 as support, it is likely to see another move southward.
• A move to the $0.077-$0.079 area is likely to offer a low-risk, high-reward shorting opportunity.

Dogecoin has been one of the more interesting coins in the crypto space recently, with the meme coin seeing some significant price action in the past month. After posting 7% gains since 31 December, Dogecoin has been trading at around $0.071 as of 4 January 2021. However, despite the recent gains, the higher timeframe charts show that the coin is still in a bearish trend.

The trading volume for Dogecoin has been in a steady decline since mid-December, and this is a sign that the bulls are losing their grip on the market. Unless DOGE can reclaim $0.078 as a support level, it is likely to see another move southward in the coming weeks.

On the price chart, there is a bullish order block that was tested in mid-December but the session close beneath $0.071 meant that it had been flipped to a bearish breaker. The market structure is also bearishly biased and will only be flipped on a move back above $0.0789.

A move to the $0.077-$0.079 area is likely to offer a low-risk, high-reward shorting opportunity. There is also a significantly lower timeframe consolidation right beneath the said resistance level at $0.0789. This means that traders should keep an eye on this area for potential shorting opportunities.

Overall, Dogecoin has posted some gains in recent days, but the higher timeframe charts still show a bearish bias. Trading volume has also been in steady decline since mid-December and unless DOGE can reclaim $0.078 as support, it is likely to see another move southward in the next week or two. A move to the $0.077-$0.079 area is likely to offer a low-risk, high-reward shorting opportunity, and traders should keep an eye on this area for potential trading opportunities.

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