Bullish DOGE Faces Profit Supply Surge — Rally or Reversal Ahead?

Dogecoin rises Friday on speculative demand.

DOGE volume rises to $6.5 billion and Open Interest $3.4 billion.

Dogecoin's profit supply grows, increasing profit taking risk.
On Friday, Dogecoin (DOGE) recovers over 19% from $0.1881 to $0.2232, maintaining an optimistic outlook.

Risk-on mentality drives this crypto market price increase. In the previous 24 hours, meme coin market capitalization rose over 6% to $77 billion.

A stable derivatives market confirms speculative demand. A rise in Dogecoin's profit supply means investors may book early gains, damping the advance.

Dogecoin interest is rising, according to CoinGlass derivatives market statistics. Open Interest (OI), the notional value of futures and options contracts, rose 6.6% to $3.4 billion in 24 hours. Trading volume rose to $6.5 billion, indicating speculative demand and market activity.

The majority of $9.9 million in liquidations were made by short position holders at $8.2 million. However, long position holders faced $1.7 million in liquidations, supporting the optimistic view and Dogecoin's 4.4% 24-hour price climb.

Dogecoin's profit supply climbed 38% in the past month, averaging 105 billion DOGE, according to Glassnode. This increase risks profit-taking if investors sell.

Still, if Dogecoin maintains its technical positive view and futures market data shows stable retail demand, the upswing might reach $0.2871, the July top.

Dogecoin pricing is well above the 50-day Exponential Moving Average (EMA), which supports the 200-day and 100-day EMAs at $0.2075 and $0.2033, respectively.

Traders are watching the tentative support levels at $0.2200, the confluence at $0.2075, and the buyer congestion zone around $0.1881, tested Sunday. Resistance at $0.2317 on May 27, seller congestion at $0.2594 on May 11, and the July top of $0.2871 are important milestones.

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