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Dogecoin’s (DOGE) swift price descent over the past 48 hours saw the memecoin fall from $0.09 to $0.0769. This represented a 15% drop within the two day period.
However, buyers can expect some temporary relief from the selling pressure at the $0.0763 support level. This support level has initiated bullish rallies twice already this year and could offer buyers another opportunity to register some bullish momentum.
DOGE extends sideways price action
DOGE has traded between a compact range over the past three weeks with $0.0763 acting as the range low and $0.0877 serving as the range high. This has presented short term traders with an opportunity to “trade the range.”
Trading the range involves buying a token at a range low and taking profits at a range high. This strategy is typically used by short term traders when the market hasn’t established a clear trend.
Thus, the descent of DOGE to the range low again provides intraday traders a buying opportunity. Traders can wait for a bullish candle close on the four-hour timeframe before entering a long position. This could yield a profit margin of 15% for buyers, if price reverses to the range high of $0.08.
Emmanuel Musa
In the meantime, the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) remained bearish with readings of 32 and -0.07 respectively.
Despite the low risk nature of the setup, traders should exercise caution, as a break of the range low would see DOGE experience more selling pressure. This could be accelerated if the current market sentiment remains bearish.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
