Dogecoin (DOGE) has made a strong bounce from the support level of $0.14, starting a new upward trend after completing a rounded bottom pattern and confirming a breakout of the 'cup and handle' pattern – a technical signal that usually indicates a clear bullish trend.
This development has brought DOGE back inside the parallel channel, with the price currently fluctuating around the $0.182 region. If this meme coin can break through the resistance level of $0.198, the upward momentum could be extended towards the target of $0.25 in the coming weeks.
However, if DOGE is rejected at this level, it is likely to enter a short-term accumulation phase. Nevertheless, the symmetry of the price pattern along with positive reactions at key support zones indicates that the bulls still hold the initiative. To reinforce this upward trend, DOGE needs to firmly maintain above the $0.16 mark in the short term.
Are investors laying the foundation for a stronger price increase of Dogecoin?
In the past 90 days, the Cumulative Volume Delta (CVD) of DOGE in the spot market has consistently leaned towards the bulls — a sign that strong demand is still dominating.
This dominance not only reflects strong investor confidence but also reinforces expectations for continued upward momentum, even during short-term corrections.
Historically, periods when bulls have a clear advantage are often precursors to notable breakouts, especially when combined with positively trending technical patterns.
With stable buying pressure from the spot market, the bullish outlook for DOGE is being strongly supported. However, if this accumulation weakens and buying pressure stalls, this meme coin may face the risk of a pullback if it cannot surpass key resistance zones.
Why are traders withdrawing Dogecoin from exchanges?
Spot Netflow data shows that on July 10 alone, over $8.5 million worth of Dogecoin (DOGE) was withdrawn from exchanges — continuing a streak of days with continuous outflows. This trend clearly reflects the preference of investors for self-custody of assets or pursuing long-term holding strategies.
This is often an early signal for an accumulation phase, when investors withdraw assets from exchanges to limit the risk of a sell-off, thereby reducing selling pressure in the market.
While it cannot be definitively stated that prices will increase, the shrinking circulating supply of DOGE could set the stage for a future price increase.
However, if the trend of capital withdrawal unexpectedly reverses, it could signal profit-taking activity – thus putting significant pressure on the price recovery.
Do derivative data signal the next turning point for DOGE?
As of now, open interest (OI) has recorded an impressive increase of 15.09%, rising to $2.44 billion – indicating that new money is strongly flowing into the DOGE futures market.
At the same time, the funding rate continues to remain positive at +0.0093%, reflecting that long-position traders are willing to pay fees to the shorts – an early signal indicating that expectations for an upward trend are still dominant.
The combination of strong inflows and stable optimistic sentiment is further reinforcing confidence in the bullish outlook from the derivatives trading community.
However, it is important to note that excessive leverage usage in the spot market context, which does not reflect consensus, could expose DOGE to the risk of mass liquidations. Currently, indicators still lean towards the bulls, but investors should cautiously monitor unusual fluctuations in funding rates and spikes in open interest to timely adjust their strategies.
Can DOGE maintain its upward momentum?
Dogecoin is sending out optimistic signals, as the price has strongly bounced from the support zone, open interest has surged, and buying pressure is clearly dominant—all indicating that the upward trend is likely to continue.
However, the important resistance zone at the $0.198 mark remains a major challenge to overcome. If DOGE can decisively break this level, the next target around $0.25 will be well within reach. Conversely, being rejected here could trigger a short-term correction.
Currently, technical signals and on-chain data still lean towards the bulls. However, for the upward momentum to be sustained firmly, DOGE needs strong trading volume support along with stability in the overall market in the upcoming sessions.