- Dogecoin (DOGE) bulls are looking to regain control of the $0.070 price range after a momentary stumble at $0.0751.
- The number of open contracts, indicated by Open Interest (OI) rates, have seen a notable improvement, signaling increased activity in the futures market.
The DOGE bulls are digging in their heels, determined not to relinquish the $0.070 price point. Following a temporary trip-up at $0.0751 on July 15, they swiftly regrouped and took back the price range. As it stands, DOGE is trading at $0.07097, having successfully vaulted above the previous range-low.
A Leap of Faith for the $0.0751 Mark
This new position has empowered DOGE to aspire for the previous range-high. Amidst this, Bitcoin (BTC) has shown a remarkable rebound from its range-low of $30k, but still has to cross the mid-range of $30.5k.
Established within the $0.070 – $0.075 range in May, DOGE exhibited a bearish breakout early June, but has since recouped most of the losses. Since mid-June, DOGE has been charting higher highs and lows, giving the bulls the upper hand.
Despite the recovery stumbling at the previous range-high of $0.0751, bulls found a silver lining in the fair value gap (FVG) of $0.0694 – $0.0655, commonly considered an imbalance in the price.
Often, the price tends to strike the FVG before reverting to its original direction. To date, DOGE has experienced two rebounds from the FVG, which intriguingly aligns with the ascending trendline support.
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This makes the confluence area of key interest to the bulls as it could serve as another buying opportunity. Conversely, a session close above the previous high of $0.0751 could be a confirmation of bullish intent, potentially aiming for a $0.081 retest.
On the technical front, the Relative Strength Index (RSI) bounced back from the mid-level, signalling a resurgence of buying pressure. However, the Chaikin Money Flow (CMF) remained stagnant, and the Average Directional Index (ADX) hovered below 20, suggesting a pause in capital inflows and absence of a strong trend.
An Uptick in Open Interest Rates
An interesting trend is seen in Coinalyze’s 1-hour chart where the Open Interest (OI) rates, which monitor the number of active contracts in the futures market, have improved over the recent days. A steady rise in OI since June 13 suggests an increasing demand in the futures market.
Yet, the Cumulative Volume Delta (CVD) remains stationary following a recent uptick, hinting at a slowdown in buying volumes. This could make breaching the $0.0751 high a bit of a hurdle. In such a scenario, the range-low/FVG/ascending trendline confluence area may provide some respite.
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