Crypto: Is Dogecoin ready for a snap? The fact that Dogecoin short positions have reached new highs on Bitfinex is a topic. That is being discussed a lot right now. It should come as no surprise that some cryptocurrency traders. Are looking forward to a short squeeze.
Although the total number of short positions in Dogecoin is important. It is not the only aspect that might result in a short squeeze in the cryptocurrency. It is critical for purchasers to be active in order to drive the price of Dogecoin higher.
The interest in dogecoin peaked, according to Google statistics, back in May. When the cryptocurrency was testing all-time highs in terms of value. Since then, there has been a steady fall in interest in Dogecoin. As has been the price of the cryptocurrency.
Dogecoin was unable to establish a foothold above $0.75 and fell as low as $0.16 in July, according to CoinMarketCap. It has made two attempts to acquire sustained upward momentum. But both have failed due to heavy resistance in the $0.34 – $0.35 zone,. And the stock has since fallen to the $0.20 mark.
Traders who switched funds from one “dog coin” to another when the value of Shiba Inu coin. It was rising plainly demonstrated that the popularity of Shiba Inu coin was detrimental to Dogecoin. It should be noted that, despite its bad performance in recent weeks. Dogecoin continues to be larger than Shiba Inu in market capitalization. According to CoinMarketCap, Dogecoin is the tenth most valuable cryptocurrency in terms of market capitalization. While Shiba Inu is the twelveth most valuable cryptocurrency.
It is imperative that Dogecoin bulls attempt to maintain the coin’s current place. As a drop out of the top-10 will imply that Dogecoin may be losing its relevancy.
Dogecoin is currently trapped between the 50 and 20 EMA
Crypto: Is Dogecoin currently stuck between the 50-day exponential moving average. And the 20-day exponential moving average on the weekly chart. It will need to move back above the 20-day moving average in order to have a chance. To develop significant upside momentum and move towards the major resistance area at $0.34 – $0.35. If Dogecoin remains within the current trading range between the 50-day exponential moving average. The 20-day exponential moving average, there will be little potential for a true short squeeze.
When viewed on a daily basis, Crypto: Is Dogecoin has recovered from the support level of $0.2150. The nearest resistance level for Dogecoin is $0.2270, which is a distance of 0.175 miles. If Dogecoin is able to establish a foothold above this level. It will make its way towards the resistance level of $0.2350.
A successful test of the resistance at $0.2350 will pave the way for a test of the barrier. At the 20-day exponential moving average (EMA), which is now at $0.24. If Dogecoin is able to rise over the 20 EMA. Also it will continue its upward trend and will eventually reach the 50 EMA at $0.2465. It is important to note that the 50 EMA on the daily chart is extremely near to the top end of the current range. At the 20 EMA on the weekly chart, indicating that the $0.2465 – $0.2475 price range. Represents the key resistance level for Dogecoin. If Dogecoin manages to break through this resistance zone and rise over the $0.25 level. This will have a great possibility to develop strong upward momentum in the near future.
When it comes to support, Dogecoin needs to settle below the support level. Around $0.2150 in order to continue its downward trend.