Dogecoin (DOGE) has broken out of its recent short-term price range, rising above $0.19 after trading below $0.20 for several days. This breakout suggests a potential bullish comeback following last week’s 14% drop. The price stabilized above a key support level of $0.1863, sparking increased buying interest among traders.
Derivatives market data supports this positive shift. Dogecoin’s 24-hour trading volume rose 21% to $3.44 billion, while Open Interest (OI) increased by 2.7% to $2.09 billion, indicating more funds flowing into DOGE derivatives.
Notably, bearish positions worth $2.64 million were liquidated in the last day, nearly double the $1.42 million in long position liquidations. The OI-weighted funding rate at 0.0075% also points to growing buying activity.
Furthermore, the long/short ratio stands at 1.06, showing slightly more traders betting on price gains, with taker buy volume at 51.53% in the past four hours.
Technically, the Moving Average Convergence Divergence (MACD) indicator has crossed above its signal line, reflecting rising bullish momentum despite still being in negative territory.
The Relative Strength Index (RSI) rebounded sharply from oversold levels to 47, indicating a reduction in bearish pressure and room for further gains before becoming overbought.
However, Dogecoin faces resistance near the 200-period Exponential Moving Average (EMA) at $0.2074. If DOGE clears this hurdle, the next target resistance is $0.2145. The recent breakout above the $0.1950 upper range boundary marks a positive step, but traders should watch these key levels closely.
In summary, Dogecoin’s price action and derivatives data suggest a short-term recovery after recent losses, with bullish signals emerging. Still, the meme coin must overcome resistance to confirm a sustained upward trend.
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