Brothers, I am Zhou Yi. Today, while monitoring the market, the one-hour chart of DOGE made my heart tighten — this trend clearly resembles a 'boiling frog' type of volatile decline! If you are still fantasizing about it suddenly surging, I advise you to calm down first and read this analysis before making any conclusions.
Technical analysis: The MACD death cross has been confirmed, and the downward channel is open.
From the one-hour chart, DOGE is currently in a trend of decreasing volatility and downward movement. The MACD yellow and white lines are moving downwards at a steady pace below the 0 axis, and a death cross has formed, indicating that bearish momentum is still being released. There is significant resistance above: 0.14125 is the pullback resistance level, and 0.13547 is the intraday resistance level. Both of these positions are key areas for bearish strength.
Support below: In the short term, look at the range of 0.12970-0.12515. If it breaks below, it will likely plunge toward the rebound support level at 0.12022. Continued shrinkage in volume indicates low market participation, and once volume increases and drops occur, a crash may happen at any time!
News: Liquidity dries up during Christmas week, options expiration may trigger volatility.
Today's QCP report also validates my judgment: Liquidity is shrinking during Christmas week, and the market is actively deleveraging, with significant reductions in open interest for BTC and ETH. This Friday, there is still $23.7 billion of BTC options expiring, with the maximum pain point at $95,000 — this means the market may be 'manipulated' toward this position, and DOGE, as a sentiment coin, is easily impacted!
Zhou Yi perspective: First drop then rebound, don't rush to buy the dip!
I believe DOGE will first test the support downwards, likely reaching 0.12515, and may even spike down to 0.12022. If there is a volume rebound at these two levels, short-term traders can speculate on a rebound. But remember: do not chase highs! The area above 0.13547-0.14125 is an excellent ambush zone for short positions.
Player suggestion: Protect your capital and wait for signals before taking action!
Short sellers: Be patient and wait. If it breaks below 0.12515, don't rush to buy the dip; see if it can stabilize around 0.12022.
Holders: It is recommended to reduce positions around 0.13547 during rebounds; if the resistance level does not break, consider exiting.
Short-term traders: In the range of 0.12970-0.12515, you can take small positions to capitalize on rebounds, entering and exiting quickly, while keeping a good stop loss!
If you often get 'cut' by the market, always buying at highs and selling at lows, you must pay attention to me — Zhou Yi. I will publish real trading strategies and pressure support level tips in the village daily to help you avoid crashes and catch rebounds!
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