DOGE rebounded violently last week with Tesla's performance in the US stock market. The smaller levels still show no signs of slowing down.
In terms of spot trading, the selling pressure during this rebound comes from the trapped positions above. There isn't much active buying power in the spot market. Instead, futures positions have been surging. As the rebound volume begins to shrink, we need to be cautious of rapid spikes that could trigger long leverage.
Currently, the highest rebound level of 0.4 is an important level recently. According to the equal distance ABCD of the rebound, we have reached a stage profit-taking level, rather than continuing to chase higher at this level. The strategy should focus on buy on dips, and going with the trend is the way to go.
Several key levels to watch
Support Level
First Level 0.377 (Tested once)
Second Level 0.365
Third Level 0.35
Resistance Level
First Level 0.4
Second Level 0.418
Third Level
Daily Market Analysis, like and follow to stay on track.