• Dogecoin reversed May/June losses and is now trading above $0.079, but two key obstacles remain before it can reach $0.1.
• The first obstacle is the previous May range-high ($0.082) and the second is a bearish order block (OB) of $0.0897 – $0.0950 (red).
• Trading volumes for DOGE have surged to over 1 billion DOGE since April highs, but capital inflows are still relatively stagnant with Chaikin Money Flow wavering near zero mark.
Dogecoin Reverses May/June Losses
Dogecoin [DOGE] has reversed its losses from May and June amidst increased regulatory and macroeconomic uncertainty, rising from $0.053 to $0.079 in the last few days, posting over 40% gains in total. This bullish price action has been reinforced by climbing above a critical price reaction zone of $0.0724 – $0.0763 (white) on the daily chart that was a key support in Q2 but was flipped to resistance in May before being flipped back to support on 25 July .
Bearish OB As An Obstacle
Despite this impressive recovery, two more roadblocks must be cleared before Dogecoin can cross the milestone of reaching $0.1: the previous May range-high ($0.082) and a bearish order block (OB) of $0.0897 – 0$.0950 (red). Bulls must clear these two levels to confirm extra bullish intent and retest 2023 highs .
Trading Volumes Surge
Trading volumes for DOGE have surged >1 billion DOGE since April highs as memecoin enthusiasts and traders take advantage of this opportunity to diversify their portfolios away from Bitcoin [BTC]. However, capital inflows have remained stagnant with Chaikin Money Flow wavering near zero mark despite the massive buying pressure showing up as an RSI score of 61 at time of writing .
Downside Risk For Price Action
If bulls fail to breach either of these two roadblocks or if price action breaches below the confluence area at around $0.073 then this would dent the bullish bias overall and push prices down towards an immediate lower support at around 0$.070 .
Dogecoin has made impressive gains after reversing its losses from earlier this year; however it needs to clear two more obstacles before it can hit its 2023 high at around 0$.1 – namely breaching both its previous may range-high ($o/.082) as well as a bearish order block (OB) at 0$.0897 – 0$/0950 (red). Trading volumes are surging which indicates strong buying pressure; however capital inflows remain relatively stagnant with Chaikin Money Flow wavering near zero mark so downside risks persist if barriers aren’t breached soon