Dogecoin saw a sudden surge within the last few days. Though the market structure remained bullish during this writing, investors should watch for this support break to highlight a bearish resurgence. Dogecoin has hovered inside the $0.67 – $0.057 range since December 2021.
Meanwhile, Bitcoin has defended the support level at $19K over the last three days to flip $19.4K into a foothold. The development welcomed a massive upsurge in the leading crypto, with bulls sweeping bears. That triggered positive reactions in the alternative token market. Meanwhile, DOGE was among the alts that saw massive buyer actions.
DOGE Overpowers Bearish Order Block; Might Revisit These Retracement Zones
The massive trading volume within the past few days confirmed the heightened demand behind Dogecoin. Meanwhile, the increased demand came when the altcoin hovered below the bearish order block near $0.065. Furthermore, this area stood beneath a crucial horizontal zone, making it a challenging resistance.
DOGE move past this level and market structure flip to bullish confirmed potential drop to $0.07 would present a ‘buy’ opportunity. The OBV supported this narrative with multiple higher lows within the last two months. Also, the Relative Strength Index swayed beyond the 50-neutral, confirming massive bullish momentum.
Meanwhile, that would mark the first time DOGE witnesses an enormous pump to overcome bearish markets before dipping again. Dogecoin presented similar actions during mid-August sessions, though bulls exhausted within no time. Thus, DOGE retracing beneath $0.683 and $0.63 would see bears initiating another extended decline.
MVRV Recovers From June Lows But Remains In Negative Territory
Santiment’s data indicated that the 365-day Market Value-Realized Value saw a sharp recovery within the past four months. Nevertheless, the index remained inside the negative region. That confirmed Dogecoin buyers endured losses over the past 365 days.
Also, Dogecoin noted a massive social presence between mid and late June. However, it lost steam in the following months. Meanwhile, the crypto market saw declines within the past day.
That came after Bitcoin failed to surge past $21K. While publishing this blog, BTC traded at $20,200, dropping 2.43% over the past day. Extended declines will cancel the latest gains. Time will tell.