Dogecoin (DOGE) has witnessed a surge in on-chain activity recently. It was reported that both Daily Transfer Volume and Number of Transactions figures increased, but did not translate into a significant price increase.
This was probably because DOGE was going through a distribution phase.
AMBCrypto reported that the influx of whales into exchanges immediately turned into selling pressure. This pushed prices towards month-to-month lows at $0.0887.
What could happen at Dogecoin range lows?
In general, a bullish response can be expected at the lows of a range.
At the same time, market sentiment was once again in extreme despair. Concerns about the escalation of the US-Iran conflict and the worsening of the energy crisis have already increased concerns. Asian stock markets are shaking.
Bitcoin (BTC) It faced profit-taking pressure and fell below the $70,000 psychological support. In these settings, dogecoin bulls will have hard time sparked a price rally.
The range went from $0.0887 to $0.104 and the midpoint was $0.0965. The $0.088 area has been important as a support level since the first week of February.
On the 4-hour chart, the RSI was at 35, indicating that bearish momentum is prevailing.
On the other hand, CMF was at +0.01. It had moved higher last week to signal that capital outflows were easing as the price approached an important local support.
It is unclear whether this is enough for the bulls to initiate a move higher. This will depend on Bitcoin and crypto market sentiment, which also depends on global investor sentiment.
Traders’ call to action: Get ready to move towards local lows
The 3-month Liquidation Heat Map showed a close long liquidation cluster at $0.084-0.088. They have accumulated over the past three weeks and could push prices even lower.
Such a liquidity increase, coupled with lower levels as support, could provide DOGE with a platform for recovery. On the other hand, a decline below $0.086 could weaken the bulls’ position.
Final Summary
- While cryptocurrencies and exchanges experienced extreme fear, Dogecoin quickly approached significant local support.
- The combination of lows throughout the month and prolonged liquidations could cause DOGE prices to rise to $0.086 soon.
