- Dogecoin once again has a bullish market structure.
- The lack of trading volume could dent bullish sentiment.
Dogecoin [DOGE] has been in an uptrend over the past month after breaking the $0.165 resistance and forming a series of higher lows.
However, a recent AMBCrypto report noted that the weighted sentiment behind the meme token was negative.
Despite the performance of the past three weeks, the public seemed to disagree with DOGE’s bullish objectives.
Technical analysis showed that this weak social sentiment had other effects on the token on the market.
The lack of hype was visible on the volume indicators
Source: DOGE/USDT on TradingView
The volume increased slightly last week after the strong price development on Monday, May 20.
However, this increase in volume was very small compared to the late February rally, or even the late March gains.
The OBV, along with the price, formed a series of higher lows in May.
However, due to the small trading volume this month compared to previous months, the price was unable to rise above the significantly lower April highs.
The RSI on the daily chart showed a reading of 58, reflecting strong momentum. The price knocked on the door of the 50% Fibonacci retracement level at $0.175 and should be able to climb above it soon.
There were few liquidations
Open Interest rose from $800 million to $931 million over the past 24 hours, while DOGE gained almost 8.5% in value.
This was evidence of the strong bullish sentiment of speculators and suggested that they expected more profits.
Liquidations were also minimal in the past 24 hours. Due to the volatility on the 24th, a large number of long positions were liquidated.
Realistic or not, here is DOGE’s market cap in BTC terms
The relative lack of short liquidations as prices rose higher indicated that market participants were not keen on continued short positions.
The CVD spot also slowly climbed higher over the past two days. If the metrics can maintain their trend, Dogecoin would likely regain the $0.175 level as support.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.