Bounced $DOGE
off the support level at $0.17 with bullish signals from the RSI and MACD indicators. Can Dogecoin reclaim $0.20 amid market optimism and rising open interest positions?
With the market recovering overall, meme coins have returned to trading. Dogecoin, the largest meme coin, increased by 1% at the time of publication, indicating a bullish return as it stabilizes at $0.17. Will this short-term recovery help Dogecoin reclaim the psychological level of $0.20? Let's find out.
Price reversal $DOGE targets $0.20.
Dogecoin bounced off a key support trendline on the daily chart as the prevailing bearish trend fades. With the price dropping from the demand area at $0.17, Dogecoin is preparing for a bullish return.
Price chart $DOGE
With its first bullish candle in five days, Dogecoin aims to test the Fibonacci retracement level of 23.60% at $0.2135. The bullish outlook is supported by the daily RSI line turning positive in the oversold zone, indicating a strong comeback.
Furthermore, the Relative Strength Index (RSI) shows a bullish divergence at the previous two lows formed near the demand area at $0.17, indicating a double bottom reversal. Additionally, the close proximity of the MACD and signal lines suggests an imminent bullish crossover. Therefore, technical indicators maintain a positive stance towards Dogecoin.
On the downside, closing below the demand area at $0.17 may test the support level at $0.1298.
Optimism in Dogecoin derivatives is rising despite the increase in long liquidations.
As optimism in the market grows overall, Dogecoin traders' confidence in the derivatives market increases. CoinGlass data shows an increase in open interest by 2.85% to reach $1.83 billion, while the excessively weighted funding rate is 0.0051%. As open interest rises, bullish trading activity also increases.
Dogecoin derivatives
However, data from the past twenty-four hours reflects a sharp decline in the number of optimistic traders, as long liquidations rose to $4.23 million. Given the continued limitation of short liquidations at $1.56 million, this imbalance has caused the ratio of long to short liquidations to drop to 0.9708 over the past twenty-four hours.
🇾🇪🇾🇪🇾🇪🇾🇪🇾🇪