Dogecoin has a bullish market structure and could move higher next week.
Indicators and volumes do not fully support the bullish bias.
Dogecoin DOGE has formed a descending wedge pattern and is about to
From another analytical perspective, the breakthrough has already occurred.
Regardless, prices have stalled over the past week and erased some of their earlier gains.
Despite this, it has maintained a bullish market structure on the 1-day chart. Things are not that simple and bulls face significant challenges.
The first is quantity
The market structure remains bullish following a structural breakout earlier this month. The memecoin has not formed a lower low since then. The RSI is also above the neutral 50, albeit just barely.
Both together suggest that bulls still have opportunities to push prices higher.
However, trading volumes remained low throughout July. Even when prices began to rise in the middle of the month, it was difficult to gain bullish confidence.
This fact is reflected in OBV's modest rebound in July, while it has resumed its slump over the past few days.
The $0.119-0.123 area is the biggest support area nearby, while the $0.139-0.143 level is the biggest resistance. A retest of the $0.12 support level seems possible, and given the bullish structure on the daily chart, there could be a buying opportunity.
Dogecoin Is Still Undervalued — Should You Buy It?
The average investment age continues to trend upwards. This means that investments are becoming more stagnant, while old coins continue to stay in their wallets.
Generally speaking, a decline in the MDIA coincides with a strong uptrend, as we saw in late February.
The 90-day MVRV ratio shows that DOGE remains undervalued despite the recent rally. This is encouraging as it reduces the likelihood of a wave of selling by profit-takers.
People holding between 10 million and 1 billion DOGE tokens (blue and orange) accumulated DOGE tokens in early July. Soon after, they began selling, indicating a lack of confidence in the token.
Whale selling coupled with lack of volume means chances of a strong rebound are slim.
In this case, a pullback in Bitcoin would have a greater impact on sentiment, especially since the BTC-DOGE correlation is at +0.95.
