DOGE Technical Analysis: Oversold signal appears but volume is insufficient, what actions should be taken at this position?

Question

【Coin World】I looked at the recent 4-hour trend of DOGE, it's quite interesting.

From midnight on December 1st until now, the price has initially surged, showing a noticeable increase compared to 4 PM. However, compared to 4 PM on November 30th, it has actually decreased. The latest K-line has closed positively, forming a bullish engulfing pattern, but the trading volume is shrinking—this is a bit awkward; while it has risen, the momentum is clearly insufficient.

From a technical perspective, several key indicators:

There is no obvious trend on the MACD side; the histogram has been negative but is gradually getting shorter, indicating that the bearish strength is weakening and the bulls are starting to rise a bit. The KDJ is currently showing oversold conditions, with a value of only 3, which typically suggests that a rebound could happen at any time. The RSI has also fallen below 30, which indeed indicates that it has reached a possible rebound area.

The divergence between volume and price is quite obvious - while the price is going up, the trading volume has actually decreased. This situation requires caution, as there are doubts about the sustainability of the upward trend.

If you want to operate, you can pay attention to these positions: Support is around 0.1316, with the lowest point touching 0.13328. The resistance level is at 0.1572, with a previous high of 0.15399.

If you want to go long, you can consider entering in batches within the range of 0.13-0.13260694, with a stop loss set below 0.13328. If you want to short, the sell target is 0.1572-0.156284, and the stop loss is set above 0.15399.

The current position is quite tricky. Technical indicators suggest that it is oversold and should rebound, but the lack of trading volume makes it hard to chase. It is recommended to test with a light position and strictly set stop-loss.

LightningClicker · Accepted Answer

With this kind of volume, the rebound is likely to fail.

ImpermanentPhobia · Answer

With such poor volume, still daring to hype a rebound, it&#39;s easy to play people for suckers.

FloorPriceNightmare · Answer

The lack of volume is a dead end; even if a rebound comes, be careful not to get crushed.

pvt_key_collector · Answer

The trading volume is so poor yet they are still talking about a rebound; I think they are trying to trick retail investors into catching a falling knife.

FrontRunFighter · Answer

volume's drying up but price goes up? classic manipulation setup. they're painting the tape again, watch out.

MEVHunterZhang · Answer

The old problem of price-volume divergence has come back again, with rebound signals flying everywhere but no one is buying, which is ridiculous.

BuyTheTop · Answer

Don&#39;t get overly excited when the volume is insufficient; such rebounds are often just a flash in the pan.