Dogecoin [DOGE]: Bulls focus on $0.09 target despite bearish sentiment

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• DOGE’s market structure was neutral on the 12-hour chart.
• Despite the bearish sentiment, there was increased demand.

Dogecoin [DOGE] tried to recover after falling into the $0.08 area. At press time, the bulls were trying to set a bearish order breaker to overcome the $0.08463 hurdle. However, their efforts may be delayed if Bitcoin [BTC] fails to close above the $22.25k level.

Read Dogecoin’s [DOGE] Price Prediction 2023-24

Source: DOGE/USDT on TradingView

On 5 February, DOGE was rejected at $0.10, leading to a price correction. Similarly, BTC faced rejection at $24k, which dropped the king coin into the $21k region. However, at press time, it was struggling to hold the $22k region. DOGE was also struggling to rise above $0.08463.

If BTC retests or closes above the $22.25K mark, DOGE bulls could target the $0.09 zone. Although OBV (On Balance Volume) has risen recently, adding to buying pressure, the RSI remained at the mid-50 level, showing a neutral market structure on the 12-hour chart.

Nevertheless, the lower time frame charts were bullish, suggesting that the bulls might have a chance to reach the $0.09 level.

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However, short sellers can book profits at $0.08220 or $0.08084 if DOGE does not close above the bearish order block at $0.08463. But a drop into the demand zone (green zone) could provide another buying opportunity for DOGE.

DOGE saw increased demand but bearish sentiment persisted

Source: Santiment

According to Santiment, DOGE’s Funding Rate has increased since 13 February, after fluctuating a few days earlier. This shows that demand for DOGE in the derivatives market increased. The demand for meme coin could have increased due to the discounted price in the $0.08 range.

Since then, however, sentiment dropped significantly and turned negative by press time. This was a sign of underlying bearish sentiment, which urged bulls to be cautious as they targeted the $0.09 price region. Continued bearish sentiment could lead to the bears gaining more influence over the market.

Nonetheless, rising open interest (OI) could further solidify the uptrend. A further rise in OI at the $0.08889 level could turn the market into a bullish structure.

Source: Coinglass