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Will Bullish Momentum Hold Amid Resistance Levels?

Published

3 hours ago

September 30, 2024

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Dogecoin (DOGE) price has recently displayed both promising gains and potential warning signs. While it has enjoyed some impressive upward movements, uncertainty remains about whether it can sustain this momentum. Traders are paying close attention as the coin approaches important resistance levels that could shape its next steps.

At the same time, there are hints that DOGE may face challenges in maintaining its recent strength. The coming days will likely be pivotal in determining its short-term trajectory.

DOGE BBTrend Reached Its Biggest Level Since May

DOGE’s BBTrend recently surged to its highest level since May 2024, surpassing 15, a clear signal of significant bullish momentum. This peak marked a strong upward force in the market, where DOGE was riding on heightened buying interest and volatility.

However, following this impressive climb, the BBTrend began to dip slightly, although it remains close to 15, indicating that the trend hasn’t yet reversed but could be at a critical moment.

The BBTrend, or Bollinger Bands Trend, is a key technical indicator that measures the strength and sustainability of price movements by analyzing how far the price deviates from the Bollinger Bands. Historically, DOGE’s BBTrend has crossed above 12 during its last major rallies, signaling the continuation of upward momentum.

If the BBTrend remains above this critical level, it suggests that DOGE could extend its uptrend and maintain its current strength. However, the recent pullback from the 15-mark also raises concerns about potential exhaustion.

While a BBTrend above 12 is often a bullish signal, this slight decline could indicate that DOGE’s momentum is beginning to weaken. It’s possible that the coin may be entering a phase of consolidation or even losing its steam after a prolonged rally.

Therefore, while DOGE has demonstrated strong price action, it’s essential to watch closely for whether it can sustain its BBTrend above 12 or if further declines in the metric will confirm a shift in market sentiment, potentially signaling the end of its upward run.

DOGE ADX Shows Its Uptrend Is Losing Steam

DOGE’s ADX is currently sitting at 33.68, down from a recent high of 45.69 over the last few days. This decline suggests that while the trend still holds some strength, DOGE price could be starting to lose momentum. The ADX, or Average Directional Index, is a key indicator used to measure the strength of a trend, regardless of its direction.

Typically, an ADX above 25 indicates a strong trend, while a value below 20 suggests a weak or non-trending market. Higher values, like those near 45, indicate a very powerful trend, which DOGE recently exhibited. With the ADX now dropping to 33.68, this is still a healthy level, showing that the uptrend remains in play.

DOGE Average Directional Index. Source: TradingView

However, the noticeable drop from its higher value raises a cautionary signal. While 33.68 is still considered strong and indicates that DOGE’s price movement has not lost all its momentum, the decline from 45 could mean that the bullish energy is starting to fade.

This weakening trend strength could imply that the hype driving DOGE’s recent price rise is waning. If the ADX continues to fall, it might suggest that the uptrend is at risk of reversing or entering a consolidation phase.

DOGE Price Prediction: Can It Break The $0.14 Barrier In October?

DOGE’s EMA lines are currently in a bullish formation, having recently experienced a golden cross just a few days ago, which triggered a sharp 30% increase in price. A golden cross occurs when the short-term Exponential Moving Average (EMA) crosses above the long-term EMA, signaling a potential upward trend.

While these EMAs are still showing bullish signs, the short-term EMA has started to drop significantly over the past few days. This decline in the short-term EMA could be an early warning that DOGE’s momentum is starting to slow down.

EMA lines smooth out price data, giving more weight to recent prices, and they help traders identify trends more accurately. In DOGE’s case, these EMAs initially pointed to a strong uptrend, but with the short-term line weakening, there may be a shift in market sentiment.

DOGE has struggled to break through key resistance levels at $0.135 and $0.128. These levels have held firm despite the recent rally, and if DOGE manages to break above them, there’s a strong chance it could quickly touch $0.14. However, the weakening ADX, which measures the strength of a trend, suggests that the bullish momentum is fading as other meme coins start to attract more attention.

With the ADX losing steam, the trend may not be strong enough to push DOGE past these resistances, and instead, a reversal could be on the horizon. If this happens, DOGE’s price could drop to $0.098 or even as low as $0.089 in the coming days.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:Bullish Hold Levels Momentum Resistance

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Market

Binance to Launch EIGEN Spot Trading With Zero Fees

Published

21 seconds ago

October 1, 2024

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Binance, the largest crypto exchange by trading volume, announced plans to list EIGEN, opening trading for a select list of spot trading pairs.

EIGEN is the native token for the EigenLayer ecosystem, a leading restaking protocol on the Ethereum blockchain.

Binance Introduces EigenLayer Spot Trading

Users will be able to trade EIGEN against BTC, USDT, FDUSD, and TRY starting Tuesday, October 1, at 05:00 UTC. Before then, however, EIGEN holders can already deposit the token in preparation for trading, with withdrawals available starting Wednesday.

Notably, the new listing will feature zero fees, allowing users to trade the token without incurring costs — an approach often used by exchanges to attract more activity.

However, Binance has cautioned that EIGEN, as a relatively new token, carries higher-than-normal risk and may experience significant price volatility. To reflect this, Binance will apply a seed tag, a special identifier to distinguish EIGEN from other tokens.

This listing highlights Binance’s interest in providing diverse trading options for its users and enhances Binance’s foray into the liquid staking space. Liquid staking tokens enable holders to earn yield against the underlying token while participating in decentralized finance (DeFi) activities like lending and borrowing. LSTs also help secure the blockchain through staking.

Meanwhile, EigenLayer remains dominant in Ethereum restaking. A recent report from CoinGecko noted that EigenLayer’s restaking contributed to the Ethereum ecosystem’s achievement in Q1 2024.

Since September 7, the total value locked (TVL) on EigenLayer has increased by over $1.5 million. This suggests users are depositing funds on the platform, which can lead to increased liquidity, popularity, and usability — key factors for a project’s success.

Currently, TVL on EigenLayer is $11.982 billion, signifying more capital locked in the DeFi protocol, offering participants greater benefits and returns.

Read more: What Is Liquid Staking in Crypto?

Other exchanges reportedly in the lineup to list EIGEN include Bybit, MEXC, Gate.io, and Kraken. The token is already available for pre-market trading in some of these platforms. Meanwhile, Tanaka, a contributor at Hashflow, said this listing could benefit related projects.

“EIGEN will be listed on centralized exchanges on 1/10. Maybe tomorrow, major exchanges like Binance, Kucoin, and OKX will announce it. I’m bidding on some LRT project,” Tanaka wrote.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

WIF Price Likely to Drop 15% Amid Extended Bullish Sentiment

Published

1 hour ago

October 1, 2024

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Dogwifhat (WIF), the Solana meme coin, has seen a notable resurgence within the last two weeks. Following the gains, the cryptocurrency experienced an incredible rise in speculative activity.

This development has raised concerns about an impending correction. History shows that if bullish sentiment runs too hot, WIF’s price declines. But will it be the same this time?

Big Warning for Dogwifhat

WIF’s price is currently $2.40 after climbing by 42% in the last seven days. Alongside the uptrend, the Open Interest (OI), which measures the level of liquidity allocated for speculative activity, also reached its highest level in July.

While an increase in OI accompanied by a price increase might be bullish, an extremely high value might not. For instance, dogwifhat’s Open Interest spiked to $485 million in May as the price increased.

Days later, WIF’s price cratered from $3.83 to $2.68. In July, a similar thing happened as the OI hit $350 million, leading the price to drop afterward. Currently, WIF’s Open Interest is $322.12 million but climbing higher than this could trigger a price decrease if history repeats itself.

Dogwifhat Open Interest. Source: Santiment

The liquidation heatmap agrees with the bias. The heatmap identifies where large-scale liquidations might occur. When the color changes from purple to yellow, it means that there is a high concentration of liquidity at certain price ranges.

As such, the zones, also known as the magnetic region, mean that price can move toward the point. According to Coinglass, WIF has significant liquidity levels at $2.25, $2.10 and $1.95. Due to this position, the price could likely move in that direction. Hence, a price decrease could be next for the meme coin.

Dogwifhat Liquidation Heatmap. Source: Coinglass

WIF Price Prediction: Road to $3 Could Take Some Time

From a technical standpoint, WIF’s price attempted to rise past $2.48, but it has been pegged back to $2.38. Also, the daily chart shows a notable supply zone at $2.85, indicating that the meme coin might have experienced a drawback if it had reached the region either way.

Furthermore, the Relative Strength Index (RSI), which measures momentum, is overbought. As a result, the reading has turned down and could accelerate WIF’s downtrend. By the look of things, WIF’s price could see a 15% decline, potentially dropping it below $2.25 and down to $2.01.

WIF price analysis bearish — Dogwifhat Daily Price Analysis. Source: TradingView

However, the token might defy the odds and rebound from the slight decline if buying pressure increases. In that scenario, WIF’s price might surpass the resistance at $2.85 and close in on $3.

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Why Bitcoin Price May Reach $73,000 in October

Published

2 hours ago

October 1, 2024

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Bitcoin (BTC) is showing signs of a potential parabolic rally in October. A combined reading of some on-chain metrics signals that the king coin is poised to move toward the $73,000 price mark.

This analysis delves into these metrics and highlights what BTC holders need to know.

Bitcoin Is the Talk of the Town

The spike in demand for Bitcoin Spot ETF is a notable marker of a potential rally above $70,000. Over the past week, these funds recorded only inflows, totaling $1.11 billion.

For context, on September 26, the Bitcoin Spot ETF inflows amounted to $366 million, representing its single-day highest since July 23. According to SosoValue, on that day, three major ETF providers — BlackRock, Fidelity, and Ark — recorded inflows of $118 million, $73 million, and $133 million, respectively, highlighting strong demand from US traditional investors.

Total Bitcoin Spot ETF Net Inflow. Source: SosoValue

Furthermore, shifts in the US economic environment strongly influence Bitcoin’s price. Since its launch, the coin’s price has been impacted by factors such as interest rate changes, inflation trends, employment data, and decisions made by financial regulatory bodies. Due to this, the uptick in demand or otherwise from US investors often impacts BTC’s price, making it imperative to track their activity.

US-based retail and institutional investors have recently increased their BTC accumulation, as evidenced by its Coinbase Premium Index. In a recent post on X, Julio Moreno, Head of Research at CryptoQuant, noted that increased BTC demand in the US pushed the coin’s price toward $65,000.

Bitcoin Coinbase Premium Index. Source: CryptoQuant

If sentiment remains bullish and demand for the coin in that region continues to rise, Bitcoin’s price may chart a course toward trading above $70,000 over the next few weeks.

BTC Price Prediction: Rising Open Interest Poses Risks

Bitcoin’s rising open interest is another good indicator that its price rally will continue. The coin’s open interest measures the total number of outstanding futures or options contracts that have not been settled or closed. Per CryptoQuant’s data, this currently stands at $19 billion, rising by 26% over the past 30 days.

Bitcoin Open Interest. Source: Santiment

Generally, the rise in an asset’s open interest signals increased market activity and could propel price to new highs. However, some analysts think it poses risks to holders of long positions.

“Open Interest is high, very high, with over $19.1B. We’re in a high-risk zone, and in my opinion, it’s not the best time for fresh long positions,” analyst JA Martuun said in an X post.

A combined reading of the on-chain data above points to a sustained bullish bias toward Bitcoin. If this trend is maintained, its price will establish local support at the $64,312 price level and aim to breach resistance at $67,929. A successful break above this level will set BTC on the path to trading at $73,777. It last reached this price level on March 14.

btc price prediction — Bitcoin Price Analysis. Source: TradingView

However, Bitcoin’s Crypto Fear & Greed Index readings indicate an overheated market. When the index is in the “Greed” zone, coin holders are overwhelmingly optimistic. Historically, this has been a sign of a potential price correction.

If Bitcoin’s price corrects, it may plummet by 15% to trade at $54,302, invalidating the bullish thesis above.

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