Dogecoin’s sentiment hit 4-month high; fell sharply afterward – Can bulls prevail?

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

DOGE soared after sentiment reached its October high. However, the sentiment fell sharply afterward, prompting an over 7% plunge.

Dogecoin [DOGE] received a double boost this week. Elon Musk’s tweet about a dog as the new Twitter CEO boosted the meme coin’s social engagement. In addition, Bitcoin’s [BTC] sharp rally and reclaim of the $25K further pushed DOGE to $0.09202.

So much better than that other guy!

— Elon Musk (@elonmusk) February 15, 2023

BTC later lost hold of $25K and broke below $24K, setting DOGE into a sharp correction. However, bulls found steady support.

The $0.08484 stopped the plunge – Can bulls gain leverage

Source: DOGE/USDT on TradingView

DOGE’s short-term plunge was kept in check by the $0.08484 support level. It allowed the bulls to rally and reclaim the 7% lost in the drop.

But the recovery faced an obstacle at $0.08654. Therefore, DOGE could break below the 50% Fib level and retest the immediate support level or 38.2% Fib level before bouncing back to target the 78.6% Fib level.

So, short-term bears could profit at $0.08484 or the 38.2% Fib level of $0.8418 if DOGE fails to clear the $0.08654 hurdle. Short-sellers should watch for a close below the 50% Fib level and retest to confirm the downtrend before making moves.

On the other hand, near-term bulls could look for gains at 50%, 61.8%, or 78.6% Fib levels depending on investors’ risk appetite.

However, the ideal buying opportunity for targeting the above levels is at $0.08484 or the 38.2% Fib level. These levels will offer a great discount alongside an impressive risk-to-reward ratio if DOGE recovers.

The RSI showed a neutral structure, but the CMF leaned towards the bears as it moved southwards.

DOGE’s sentiment hit a 4-month high before falling sharply

Source: Santiment

According to Santiment, DOGE saw a rise in weighted sentiment after Elon’s tweet. The positive elevation reached the October 2022 level. Notably, DOGE hit $0.136 with the same positive elevation in sentiment in October.

However, yesterday’s sentiment declined significantly after BTC lost the $25K and $24K psychological price levels. If BTC breaks below the $23 and other lower support levels, the DOGE’s sentiment could drop further and give bears leverage to push DOGE towards the 38.2% Fib level.

Nevertheless, the Mean Coin Age exhibited a rising slope, indicating a bullish momentum that could push DOGE towards upper resistance levels.

Mean Coin Age measures how long a coin stays at its current address. The rising slope shows a wide-accumulation trend – a bullish signal which could boost DOGE’s recovery. But a strong recovery may happen if BTC reclaims $24K and $25K price levels.

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