DOGE 4-hour chart observation: Oversold signal appears, but what to do if the volume doesn't confirm?

Question

[Crypto World] Recently been watching DOGE’s 4-hour chart, and the trend is quite interesting.

From December 4th to 5th, the price surged first, and the bullish candle at 16:00 engulfed the previous bearish one, showing a brief burst of strength from the bulls. But if you look closely at the volume, it’s clearly shrinking, with both price and trading volume declining together—this market is really quiet, and retail investors aren’t moving.

The MACD histogram has been underwater, but the negative value is narrowing, indicating that bearish momentum is waning. KDJ has dropped to 9, which is solidly in the oversold region. MA10 has been above MA30 since 16:00 on the 5th, but then it broke below support, suggesting a possible bottom test. The divergence between price and volume is very clear.

Looking at the current market structure:

Watch for support at 0.1403 below; if it falls further, the next is the previous low at 0.13328
Resistance is at 0.1544 above; if it breaks out, look to 0.15166

As for strategy, personally I lean toward: If it pulls back and stabilizes in the 0.13328-0.1403 range, you could consider a small long position, with a stop loss below 0.13328 If it rebounds to the 0.1544-0.15166 resistance area, reduce position or consider a short, with a stop loss above 0.15166

To be honest, this is a bit of an awkward position right now. It’s certainly oversold, but without volume support, it’s best to wait for a clear signal before making a move.

MoodFollowsPrice · Accepted Answer

It’s really frustrating when the trading volume doesn’t cooperate, that’s the most painful part.

KDJ is down to 9 and it’s still falling? That means there really isn’t anyone willing to buy...

If 0.1403 doesn’t break, I’ll start to get a little nervous, feels like it’s still going to test the bottom.

I hate situations where volume and price diverge the most, indicators can deceive you in an instant.

Hold on, if it really breaks through 0.1544, I’ll rush in at 0.15166 immediately, no matter what I have to take a gamble.

HalfIsEmpty · Answer

The volume is so weak and you still dare to expect a rebound? I doubt it.

---

KDJ is down to 9 and you’re not bottom fishing yet? What are you waiting for?

---

Another divergence between volume and price, getting tired of this trick...

---

If it can’t break 0.1544, I don’t think there’s any hope, just more consolidation.

---

All the retail investors have left, who’s going to drive this rebound...

---

Oversold is one thing, but rebounds without volume are all fake.

---

The MA trend actually looks okay, mainly depends on whether it can hold.

---

Analyzing volume again...DOGE is just like this, don’t overthink it.

---

If 0.1403 breaks, I feel like there’s more downside to come, kind of nervous.

---

I just want to know how far this rebound can go, volume is too critical.

---

Bear exhaustion? Why do I feel like there’s still more downside momentum?

TokenVelocityTrauma · Answer

I noticed the divergence between volume and price, but I'm just worried that if all the retail investors are staying out, any rebound won't have much momentum.

When the KDJ drops to an extreme like 9, it's often a prelude to a fake-out; anyway, I'm not daring to go short here.

We have to hold the 0.1403 line, otherwise, my mindset will really collapse.

I never trust rebounds without supporting volume, I'd rather wait.

Don't even think about anything before breaking 0.1544, it's all nonsense.

ChainMelonWatcher · Answer

Volume is shrinking with oversold conditions. We need to see volume pick up before daring to bottom fish.

Retail investors have all pulled out. How can there be a rebound? No market sentiment at all.

KDJ dropping to 9 is pretty harsh, but without accompanying volume, it's indeed risky.

0.1403 needs to hold, otherwise it's really gg.

This kind of price-volume divergence is the worst, just gets chopped repeatedly.

Resistance at 0.1544, and if that's broken there's still 0.15166, but only if someone steps in.

It's a quiet market, just have to wait for momentum.

MidnightTrader · Answer

It's really frustrating when the volume doesn't cooperate, feels like acting in a play, haha

---

KDJ drops to 9 and you still dare to buy? I don't believe in this rebound

---

Retail investors have really all left, it's so quiet...

---

0.1403 can't hold much longer, getting a bit nervous

---

MACD narrowing doesn't mean it's about to rebound, still need to watch volume follow-through

---

Oversold doesn't mean it will rise immediately, I've been burned by this so many times

---

I've seen a lot of volume-price divergence, in the end, you still need volume to confirm

---

Watching the 0.1403 support, if it breaks it'll drop straight to the previous low

---

Bulls gaining strength? Looks to me like it's their last gasp

---

It's right for retail investors to stay put, with the market like this, who dares to bottom fish