Dogecoin Shows Signs of Recovery as Market Gains Momentum

Dogecoin Shows Signs of Recovery Amidst Market Upswing

Dogecoin (DOGE) is signaling a potential resurgence after a recent dip. With the cryptocurrency market exhibiting a general upward trajectory, DOGE has emerged with notable price movements.

Traders' Support for Dogecoin

In the past 24 hours, Dogecoin has gained 4.05%, currently trading at $0.33. This price uptick began with robust buying at a critical support level of $0.31.

Accompanying the increasing trader interest, trading volume has also risen by 8.5% in the last day. This activity in altcoins reflects growing investor confidence and strengthens upward momentum. Technical analysis suggests that if DOGE holds above the $0.31 support, there is a strong possibility of a 25% short-term price increase, potentially reaching $0.41.

Furthermore, DOGE is forming a double bottom pattern on its daily chart. This pattern typically precedes significant upward movement, and Dogecoin is currently in the process of completing this formation.

On-Chain Data Confirms Upward Momentum

Bullish market sentiment is corroborated by on-chain data. According to Coinglass, the outflow of DOGE from exchanges to wallets has reached $11.50 million. Outflows indicate long-term investor holding, signaling increased buying pressure.

Confidence in DOGE futures is also noteworthy. The current long/short ratio is 1.056, the highest since December 2024. Among key investors, 53.5% hold long positions, with 46.5% maintaining short positions.

The Relative Strength Index (RSI), a critical indicator, sits at 45, indicating that Dogecoin is not overbought and retains further upside potential.

Outlook

Collectively, these factors suggest that Dogecoin could maintain its upward momentum and test the $0.41 level in the coming days. However, it is imperative that the $0.31 level remains a firm support.