Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Bitcoin [BTC], along with the rest of the crypto market, had a bright start to the week last Monday (29 May) but posted losses in the following days. Bitcoin fell by close to 6% while Dogecoin [DOGE] experienced a 4.7% drop to reach $0.0705 on Wednesday, 31 May.
Thereafter, there was some demand behind the meme coin and prices rose to $0.0733. The higher timeframe trend has been bearish over the past six weeks after the rejection at $0.095.
A range formation but markets remained indecisive
Source: DOGE/USDT on TradingView
Weekend price actions rarely possess strong trends, and the trading volumes are likely to be lower than weekdays as well. This was true for DOGE this weekend. Even though the RSI was above neutral 50, the market structure was not bullish.
Dogecoin has traded within a range (yellow) from May. This range extended from $0.069 to $0.075. Additionally, there was short-term resistance at the $0.074 mark which the DOGE bulls have not overcome since 19 May.
Over the past week, the A/D indicator climbed higher to show a rise in buying pressure. But this resulted from a flurry of buying on Friday, 2 June, that pushed prices above the $0.072 level.
This was an important resistance, as it represented the mid-range value. Overall, Dogecoin lacked bullish momentum and is expected to see a bearish reversal around the $0.074-$0.075 resistance zone.
Bullish sentiment was building up in the past two days
Source: Coinalyze
While Dogecoin lacked significant demand over the past two weeks, there was a minor uptick in buying pressure in June. Despite the repeated rejection at the $0.074 level, the bulls appeared ready to take another shot at it with renewed vigor.
Realistic or not, here’s Dogecoin’s market cap in BTC’s terms
From Thursday, 1 June, the Open Interest has climbed steadily higher. According to Coinalyze, it amounted to an increase of $18 million worth of contracts. Meanwhile DOGE climbed by close to 3%. Together, it indicated bullish sentiment in the market.
However, the spot CVD, which had been in a downtrend in late May, saw only a minor bounce on Friday and subsequently was flat.