Dogecoin: Examining how traders can react to DOGE’s $0.08 move
Dogecoin showed some bullish pressure and closed at higher highs for three consecutive days,
Is Dogecoin’s bottom already in? Since defending the $0.07 support days ago, the memecoin has shown relative strength.
Dogecoin [DOGE] printed three consecutive green candles, closing at higher highs each day. As a result, it reclaimed the $0.075 resistance level.
At press time, DOGE traded at $0.075, up 3.85% over the past 24 hours. Spot Volume also rose 11% to $717 million.
Why are Dogecoin buyers returning?
After Dogecoin slipped below $0.07, buyers stepped back into the market. As a result, demand recovered sharply.
Over the past 24 hours, Buy Volume climbed to 681 million, according to Coinalyze. Sell Volume also increased to 619 million.
As a result, DOGE recorded a positive Buy/Sell Delta of 62 million, signaling aggressive Spot accumulation.
On the derivatives side, a similar trend emerged. According to CoinGlass, Futures Inflows reached $339.8 million, while Futures Outflows fell to $330.8 million.
As a result, Netflow increased 9% to $9 million. Since DOGE signaled a potential trend reversal three days ago, cumulative Futures Inflows have totaled $791 million.
The rise in Futures Inflows suggested traders opened more positions, regardless of direction. With buyers returning to both the Spot and Futures markets, sentiment improved. Traders now appear to view the recent low as a potential bottom.
Can the demand hold for DOGE?
Renewed demand also strengthened Dogecoin’s momentum. Relative Strength Index (RSI) reflected that shift.
The RSI formed a bullish crossover, climbed above the oversold zone, and reached 33 at press time. Although it remained below neutral, the steady rise suggested improving momentum.
Buyers have gradually regained control and attempted to overpower sellers. On top of that, DOGE reclaimed its 9-day Moving Average (MA), reinforcing short-term strength.
Together, these signals suggested market conditions had improved. If buying pressure persists, DOGE could reclaim the 21-day Moving Average at $0.079 before challenging $0.08.
However, fading demand could weaken the recovery. If leveraged positions unwind, increased Futures activity may trigger liquidations, opening the door for another move below $0.07.
Final Summary
- DOGE reclaimed $0.075 after defending the $0.07 support, posting three consecutive daily gains.
- A drop in demand could trigger Dogecoin’s Futures liquidations, increasing the risk of another move below the $0.07 support.
