Next Steps for Dogecoin Traders as Meme Coin Prices Surge

Coin World reported:
After breaking the baseline of $0.11, Dogecoin is approaching a crucial support area. The open position drop of DOGE exceeds the daily drop, indicating a weakening bearish momentum.
Dogecoin reversed from the resistance level of $0.22 in May, laying the foundation for bearish dominance in the market. In this bear market, when meme coins broke through the 20-day and 50-day moving averages, they triggered a series of red candles.
As predicted in our previous article, DOGE further succumbed to bearish pressure, breaking through the key support level of $0.12. As the bull market struggles to make a comeback, a potential reversal from the immediate support range of $0.096-$0.01 can stem the bleeding.
At the time of writing, DOGE’s trading price is around $0.101.
Will the Dogecoin bears continue to exert pressure?
Since the reversal from the $0.22 resistance line, bearish pressure has been dominant. Under this bearish pressure, meme coins have depreciated by over 54% in the past three months.
During this downturn, meme coins formed a classic descending triangle pattern on the daily chart. After testing the $0.129 level for over three months, bears finally triggered a series of red candles below this baseline, confirming the breakout of the bearish pattern.
The bull market retested this level shortly after the breakout, but the 20-day moving average resisted this rebound, as altcoins continued their downward trend and approached the crucial support range of $0.01-$0.096 at the time of publication.
Looking ahead, this range is crucial for immediate stabilization. In fact, analysis of the visible range trading volume profile shows that the current price is on the edge of a relatively high liquidity area. This suggests that bears may find resistance from bulls for further declines.
Therefore, any reversal from the current support range can help bulls retest the $0.11-$0.12 range. If the price rebounds above the 20-day moving average, it may enter a low volatility zone.
On the other hand, any decline below the immediate support range could lead meme coins to a significant drop towards the $0.08 range.
As of the time of writing, the relative strength index (RSI) continues to fluctuate in the oversold zone. Any potential reversal, from the standpoint of the news article, will confirm a shift in favor of the bull market.
Unrealized interest declines
According to Coinglass data, DOGE’s open interest contracts have dropped by nearly 12% in the past 24 hours. However, during this period, the price has dropped by about 4%, indicating a lack of confidence or uncertainty among traders.
This situation typically points to a potential reversal or consolidation phase – the market may stabilize before the next move.