Dogecoin [DOGE] continued its pattern of trading within a defined range, maintaining its position above the lower boundary of that range. Since August 18th, DOGE has remained within the 23.6% and 38.2% Fibonacci levels, with neither the bearish nor bullish forces managing to push it beyond these levels. For more insights, you can check out the 2023-24 Price Prediction for Dogecoin.
Nonetheless, DOGE has witnessed a predominantly negative price movement in September following its recent failure to sustain a bullish momentum at $0.0664. Simultaneously, the cryptocurrency market remains characterized by sideways trading, with Bitcoin (BTC) fluctuating between $25.6k and $26.4k.
Are Bears Becoming More Dominant?
When examining DOGE’s past price patterns, it becomes evident that this meme-inspired cryptocurrency frequently undergoes phases of trading within a relatively stable range before making substantial upward or downward shifts. As such, the current price behavior appears to be in line with this recognizable trend.
Based on the most recent data, it seems that bearish sentiments are strengthening, with the Relative Strength Index (RSI) consistently staying below the neutral 50 level, pointing to a lack of buying momentum. Moreover, the On Balance Volume (OBV) showed a drop of over 2 billion in the last two days, hinting at an impending bearish move.
If the bearish trend persists in the coming days, DOGE might dip to the $0.055 mark, coinciding with the 0% Fibonacci retracement. Notably, this value matches DOGE’s lowest recorded prices during June and August of this year.
On the other hand, if the market sees a bullish upswing, and if there’s heightened interest in DOGE, this could lead to a price rebound. Potential investors might then target the price range of $0.066 to $0.07.
Related also: Dogecoin: Elon Musk Declares X as DOGE-Friendly
Speculators Exhibits a Bearish Bias
According to Coinglass data, traders in the futures market are bolstering their bearish stance by expanding their short positions. At the time of writing, shorts accounted for 52.66% of the open contracts.
This represented a $5 million difference between long and short positions. This showed that speculators were actively betting on DOGE sinking lower.