Dogecoin bulls overcome resistance: Is a new price structure in play?

• Dogecoin bulls forced a breakout of the bullish market structure.
• Lower time frame sentiment could push DOGE towards nearby Fibonacci levels.

Dogecoin [DOGE] has seen positive developments in the crypto markets lately. The 7.3% increase on Friday, August 23, was a sign of bullish intentions and meant that another 8% to 18% increase could occur soon.

More and more Dogecoin wallets were in the money. With the market trend being bearish since May, this suggests that profit-taking may be reaching its peak and hinder Dogecoin's progress.

Dogecoin reclaims local resistance zone as support

Source: DOGE/USDT on TradingView

The market structure on the daily chart was bullish after the daily session closed above $0.111 on August 23. However, the longer-term trend was bearish, with occasional bullish structures in between, such as the recent development.

The Fibonacci retracement levels based on the price decline over the past month have highlighted the $0.1196 and $0.13 levels as the next resistance zones. Given the bullish structure, Dogecoin is likely to reach one or both of these levels.

The daily RSI was above the neutral level of 50, signaling a bullish sentiment. However, the OBV failed to rise significantly. While momentum was changing, the lack of demand meant that DOGE's gains could easily be reversed.

Optimistic in the short term, not so hopeful in the long term

Source: Coinalyze

The funding rate behind DOGE has been declining over the past few days but has remained positive. Open interest has been rising alongside the price, signaling bullish momentum despite a slight decline over the past 24 hours.

During this time, Dogecoin fell by just over 4% from $0.1149 to $0.11.

Read Dogecoin's [DOGE] Price forecast 2024-25

While futures data showed that speculators were willing to go long, spot CVD started a downward trend again.

This showed weak buying activity in the spot markets and reinforced the notion that Dogecoin’s gains could easily be wiped out if bearish sentiment takes over.

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and reflects solely the opinion of the author.