How Dogecoin [DOGE] buyers can leverage this strategy to curtail their risk

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

After breaking out from its descending channel, Dogecoin strived to reclaim its bullish edge.

The funding rates unveiled a bullish edge but marked a declining trend. 

Last week's rebound from the $0.054 baseline set the foundation for Dogecoin's [DOGE] efforts in challenging the 20/50 EMA barriers. While attempting to secure a spot above these barriers, the buyers heightened their pressure in the last few sessions.

Here’s AMBCrypto’s price prediction for Dogecoin [DOGE] for 2023-24

Meanwhile, the patterned breakout led DOGE to enter into a rather over-extended low volatility phase. At press time, DOGE was trading at $0.0597.

DOGE eyed at multiple resistances, will the buyers dwindle?

Source: TradingView, DOGE/USD

The recent reversal from the lower trendline of the down channel aided the buyers in flipping the $0.0585-$0.0587 resistance range to support. In the meantime, the $0.0607 ceiling posed solid recovery barriers over the last ten days.

DOGE's down-channel breakout in the four-hour timeframe put the meme-coin in a better position to defy the selling tendencies of its near-term EMAs.

A sustained sway above the 50 EMA could aid the buyers in provoking a near-term rally. But the bears could likely constrict the price in the $0.06 zone given the confluence of 200 EMA, trendline, and horizontal resistances.

Any immediate pulldowns could continue to find reliable rebounding grounds from the $0.058 support region.

The Relative Strength Index (RSI) found a close above the midline to depict a slight preference for the buyers. Additionally, the On-Balance-Volumes's (OBV) higher troughs over the last few days bullishly diverged with the price action.

Source: Coinglass

Over the last few hours, DOGE's funding rate on most exchanges still stood positive but showed a slightly decreasing trend. Should this trend continue, it would depict a decreasing bullish sentiment in the futures market.

Source: Coingslass

Moreover, an analysis of the long/short ratio revealed a slight edge for the sellers over the last 12 hours. The buyers should keep a close watch on the movements of the funding rates alongside the long/short ratio to gauge the wider sentiment.

Finally, the dog-themed coin shared a 61% 30-day correlation with the king coin. Thus, keeping an eye on Bitcoin’s movement would complement these technical factors.

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