#Dogecoin : Is a Recovery Beginning?

After a severe correction that caused Dogecoin to drop 35% in just two weeks, the meme cryptocurrency is showing signs of life with a 5% rebound. However, the rise to test the resistance at $0.21 has raised more questions than certainties. The optimism is tempered by derivatives data, where decreasing open interest and lower funding rates reveal a lack of conviction among traders.

The outlook is complicated by whale activity, which has liquidated over 740 million of $DOGE since mid-July, according to BlockNews. Although technical indicators, such as the stochastic oscillator and the RSI, show an emerging recovery, the key will be to convincingly surpass the $0.21 level.

If this is not achieved, the risk of a new drop towards $0.14 remains latent, suggesting that this recent momentum could just be a temporary breather in a bearish trend.