Dogecoin (DOGE): is rally possible?
(note: the post contains data by AMBCrypto)
Dogecoin (DOGE) formed a falling wedge pattern and was on the verge of a bullish breakoutfrom it. Another analysis perspective showed that the breakout has already occurred.
In either case, the price has stalled over the past week and wiped out some of the earlier gains.
Despite that, it maintained the bullish market structure on the 1-day chart. Things were not as simple, and the bulls had significant challenges ahead.
The market structure was still bullish after the structure break earlier this month. Since then, the meme coin has not formed a lower low. The RSI was also above neutral 50, although just barely.
Together they showed that the bulls still have a chance of pushing prices higher.
However, the trading volume has been very low throughout July. Even when the prices started climbing higher halfway through the month, bullish conviction was hard to come by.
The OBV reflected this fact with a tepid bounce in July, and over the past few days has resumed its slump.
The 90-day MVRV ratio showed DOGE was undervalued despite the recent bounce. This was encouraging as it reduced the likelihood of a wave of selling from profit-takers.
Whale selling combined with a lack of trading volume meant that the chances of a strong rally were slim.
A Bitcoin (BTC) pullback can impact sentiment more in these conditions, especially since the BTC-DOGE correlation stood at +0.95.
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