Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Bitcoin [BTC] was able to find good demand in the $18.6k zone and quickly surged past the $22k mark. In the next few days, $22.6k and the $24k mark could be tested as well. Such a move upward would be greatly beneficial for Dogecoin [DOGE] bulls.

DOGE buyers have shown strength in recent days, and the $0.065 resistance level has likely weakened after multiple tests. Can a breakout past the consolidation zone be seen within this week?

DOGE- 1-Hour Chart

On the one-hour timeframe, it can be seen that the past two weeks did not see a strong trend for DOGE. The $0.061 area (cyan) was highlighted to show a place of support that DOGE repeatedly tested. A week into September, this area was overwhelmed by the sellers. However, it was reclaimed just a couple of days later.

The Volume Profile Visible Range tool showed the Value Area Low (VAL) and High to lie at $0.059 and $0.068. The Point of Control was at $0.064. These levels represent significant short-term support and resistance.

While the price has seen solid bullish momentum after the dip to $0.058, the trend was not bullish. The price was stuck between $0.063 and $0.065 levels and appeared to be in a consolidation phase. A breakout past the $0.064-$0.065 region and retest as support could offer a buying opportunity.

Rationale

The Relative Strength Index (RSI) dipped below the neutral 50 line and even tested the 50 line as resistance in the past couple of days. This development highlighted the idea that the short-term momentum could be pointed downward. The RSI has been in a downtrend for nearly a week now, which suggested that another test of the $0.063 support could materialize.

The Accumulation/Distribution (A/D) line, in contrast, was in a steady uptrend. The buying pressure has been significant and relentless in the past two weeks. If Bitcoin can move higher, the buying pressure behind DOGE could overwhelm sellers and DOGE can register good gains.

Until such a breakout, the lack of a strong trend remained a factor to watch out for. The Choppiness Index was nearly at 61.8 to suggest consolidation. The Aroon Oscillator did not show a steady trend either.

Conclusion

Overall, despite the buying pressure behind Dogecoin, the sellers have managed to rebuff attempts to climb higher. This might not continue for long, especially if Bitcoin can climb past the $22.6k mark. The $0.063 and $0.061 (cyan box) can be used to buy DOGE, with a tight stop-loss given the nature of the short-term range.

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

Bitcoin [BTC] has surprised many market participants over the past week as it posted an impressive 22% rally. Ethereum [ETH] led the bull party.

After reaching its month-long range lows, Ethereum rocketed northward by nearly 55% to touch $1630. Like Ethereum, Cardano [ADA] also bounced from just beneath its range lows.

However, Cardano was unable to pierce past the mid-range resistance. At the time of writing, a revisit to the range lows was a possibility for ADA.

ADA- 12-Hour Chart

The 12-hour chart showed a clear range for Cardano from $0.44 to $0.64, highlighted in white. The mid-point of the range (dashed white) lay at $0.54. A week ago, ADA dipped below the range low and appeared to retest the same as resistance.

However, this turned out to be a short-term bear trap. The prices quickly bounded higher following the bullish impetus of the leaders Ethereum and Bitcoin.

This momentum could fade somewhat as both coins reached their respective higher timeframe resistance levels.

ADA- 2-Hour Chart

The fact that ADA was unable to flip the mid-range level to support would be quite disappointing to the bulls. On the two-hour chart, the move from $0.4 to $0.54 was used to plot a set of Fibonacci retracement levels (yellow).

They showed the 38.2% retracement level to lie at $0.493. At press time, the price had already closed a trading session beneath this level and appeared to retest it as resistance. Over the next few hours, ADA could resume its downward move.

A session close above $0.5 would be a sign of some short-term bullishness. Moreover, the $0.485-$0.505 area was a bastion in bearish hands. Based on the price action, a move lower looked to be brewing.

The 38.2% retracement level was important for the bulls to defend, but the bears have taken control of it.

The Relative Strength Index (RSI) also slipped below neutral 50 on the two-hour timeframe, to show bearish ascendancy. The bullish crossover on the Stochastic RSI might not mean much by itself.

A bearish crossover can be awaited to explore entering short positions for lower timeframe traders.

The On-Balance Volume (OBV) was once again rejected at a resistance level from earlier in July. This meant the breakout had not really begun, despite to surge to $0.54. The Chaikin Money Flow (CMF) also slipped below the -0.05 mark to denote significant capital flow out of the market.

Conclusion

To summarize, Cardano enjoyed a strong bounce over the past week taking it from $0.4 to $0.54. Yet, the failure of the OBV to break above resistance was an indication of the lack of heavy demand.

The move back below the 38.2% level also pointed toward a move to the 61.8%-78.6% pocket, the $0.43-$0.45 area. Aggressive traders can look to short ADA, with this pocket as a take-profit target, and a stop-loss just above $0.5.