The original meme coin, Dogecoin, hasn’t seen substantial demand within the past few weeks. For instance, the selling pressure outweighs April’s buying volume, which saw DOGE spiking to $0.173 from $0.134. Meanwhile, the Tesla executive has supported Dogecoin, triggering uptrends. Elon Musk posted about DOGE on Twitter several times last April (2021), and massive price spikes emerged.
This year, Musk could not trigger massive upticks in Dogecoin even after presenting the idea of DOGE payments for Twitter subscriptions.
Dogecoin – 12Hr Chart
DOGE’s technical structure on long-time-frames did exhibit a bullish hint. The alt flipped $0.132 – $0.138 to support level from resistance. The VPVR presented $0.143 as the Point of Control (POC) for the previous four months. The VAL (Value Area Lows) stood at $0.13, meaning buyers may join around this territory.
DOGE boasted a bullish structure on low time-frames over the last month. Even on the somewhat long one, like the 6hr and 12hr, flipping $0.13 to demand from resistance presented a substantial bullish motion. Nevertheless, was that sustainable? Dogecoin sees faded demand. Also, the dog coin met rejections at 61.8% Fibo retracement mark twice.
Reasoning
The Relative Strength index dropped under the neutral 50 and seemed to retest the level as resistance. That can be the first indication that the momentum shifts towards bearish. However, this is not a reliable indication by itself. Also, the Chaikin Money Flow slipped below -0.05, indicating a substantial capital outflow from the market.
The on-balance volume affirms the selling momentum as OBV lost all gains acquired in April and dropped further. That meant a massive selling momentum signal, and the on-balance volume dipped below March lows at this publication.
Final Thought
Dogecoin might rely on $0.13 as a solid foothold over the coming days. However, the meme token has seen significant selling volume over the last week. That might witness DOGE plunging under $0.13. Momentum indicators were yet to see oversold conditions. The alt sliding below $0.13 may see Dogecoin revisiting the $0.11 amid liquidity search. Nevertheless, broad market sentiment remains critical for the meme token market over the coming trading sessions.