On August 4 (Monday), the price of Dogecoin rose to $0.206, significantly rebounding from the weekend low of $0.19, with a cumulative rebound of 10.75% over two days, recovering half of last week's 20% decline. Meanwhile, its futures market has shown strategic bullish signals, indicating a potential for further upward movement.
According to data, the open interest of Dogecoin futures has increased by 2.63%, surpassing $3.01 billion, while the futures trading volume has decreased by 8.9%.
The decline in trading volume indicates that most Dogecoin traders chose to hold leveraged long positions in the past 24 hours, which also allowed bullish traders holding leveraged long DOGE positions over the weekend to reap significant profits.
Also corroborates the positive shift in market sentiment.
The long-short account ratio for DOGE/USDT on Binance is 2.7693, while OKX's DOGE long-short account ratio reaches 3.89, with Binance DOGE traders having the highest long-short position ratio at 2.8642.
Amid a background of over $100 million in capital inflow during trading, the rise in the long/short ratio confirms that top traders have gained absolute dominance, further supporting the prospect of Dogecoin's price recovery.
So, can Dogecoin maintain above $0.21 and break through $0.24?
Current technical indicators show that Dogecoin's price is testing the 5-day Simple Moving Average (SMA) at $0.201, and the upper shadow on the daily chart is nearing the 8-day SMA resistance level at $0.206. If it can break through the 13-day SMA at $0.20958, it may pave the way for a retest of the $0.24 resistance area, thus confirming a complete recovery from the recent downward trend.
Additionally, Dogecoin's Relative Strength Index (RSI) is currently at 46.70, above the weekend low of 39, indicating that momentum is in a neutral state, with room for further upward movement before entering the overbought range. However, if it fails to close above $0.21 within the next 24 hours, sellers may regain control of the market, and the price could retreat to the $0.188 area.
In summary, the current price trend of Dogecoin is favorable for short-term bulls, but it needs to maintain a consolidation above the $0.21 area to have a chance of recovering the $0.24 high.