Dogecoin’s (DOGE) value has taken a hit, slipping beneath the $0.06 threshold on Monday, October 9, offering traders the opportunity to consider short positions.
The sharp sell-off on October 9 led to a breach in a demand zone that dated back to June. This trend indicates that the bulls are fatigued, which doesn’t spell good news for long-term investors.
A technical analysis report hinted at the possibility, predicting a bearish market sentiment strong enough to breach this support zone. The prediction came true, and traders are now on the lookout for short opportunities.
The drop in Dogecoin’s price changed the dynamics of the $0.06 territory from a bullish order block to a bearish breaker block. Indicators such as the Relative Strength Index (RSI) and On-Balance Volume (OBV) reflect the bearish market dominance over the past ten days.
The Cumulative Volume Delta (CVD) remained flat from October 5 to October 9, but it took a sharp plunge on Monday, October 9, coinciding with a fall in Bitcoin’s (BTC) price to the $27.4k mark. The Open Interest (OI) chart also showed a steady decline, pointing to a discouraged sentiment among futures market longs.
With the current lack of demand in the spot market, expectations of further losses for Dogecoin are justified. However, short sellers should stay alert to a potential Bitcoin rally, as it could swiftly shift the market sentiment and break the bearish structure.
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