Popular meme coin Dogecoin (DOGE) bounced back from the $0.06 support level. This despite, crypto analyst Suzuki Shillsalot’according to of bears intense selling pressureyla your support levelIt is possible to break it.
Bears on fourth try critical support level will it break?
cryptokoin.comPopular meme coin as you follow from dogecoin (DOGE) 0.06 dollarness critical supportIt bounced off the skin. However, the danger is not over yet. bears ybig sale printingIt is trying to break the support level. If the sales pressure continues, it is possible for sellers to reduce this critical support. Because this level was critical for meme coin bulls for a month. Buyers stood firm to resist the downtrend. Leading cryptocurrency Bitcoin (BTC) is trading above $27,000. The broader crypto market is making a concerted effort to enter the green zone. However, it would not be surprising if DOGE bears break the bullish resistance at the $0.06 support in the short term.
Support and resistance levels are established price zones that contain a large number of buy and sell orders. They often serve as critical levels to watch out for during an up rally or downtrend. The $0.06 support level has been a stronghold for buyers since early June. Despite the downward trend in the meme coin price since late July, the support level has stood firm to limit the downward trend. However, the support level has been retested multiple times recently, highlighting the weakening structure with the bears poised to take advantage. The Relative Strength Index (RSI) has fallen below neutral 50 to underline the selling pressure in recent hours.
The indicators are in favor of the meme coin bears!
Similarly, On Balance Volume (OBV) trading volume, which was in an upward trend in October, decreased. Therefore, it is possible for meme coin sellers to move down to their short-term target of $0.055. This means they break the critical support at $0.06. Alternatively, if the buyers hold the support again, $0.064 to $0.067 will be the short-term targets of the bulls. Meanwhile, shorts dominated the futures market while longs recorded huge losses
Sellers leveraged the selling pressure by taking more short positions in the futures market. At the time of writing, short positions worth $46.04 million accounted for 52.02% of open contracts. As a result, buyers of meme coins have experienced more liquidation over the past day. This demonstrated the willingness of market participants to push DOGE to prices below $0.06 in the short term.
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