Dogecoin has shown stable performance in recent weeks, consistent with the overall bullish trend in the cryptocurrency market. Over the past two weeks, DOGE has increased by more than 25%, pushing the price up to $0.24.

Despite this growth, the asset has experienced a slight pullback in the past 24 hours, dropping 0.3% to $0.22 at the time of writing. The latest fluctuations mark a new phase of interest in the asset, particularly from retail traders.

Dogecoin sentiment index and retail activity

One of CryptoQuant's contributors, Burak Kesmeci, recently shared new insights into the activity of the DOGE futures market. In a post titled 'Too Many Retail Traders? DOGE Futures Show Repeating Peak Patterns,' Kesmeci points to the potential impact of speculative trading behavior.

His analysis emphasizes that previous price peaks of Dogecoin often coincide with a strong increase in retail participation in the futures market, raising questions about the sustainability of such bullish trends.

Kesmeci's analysis focuses on a visual metric tracking retail investor trading activity in the DOGE futures market. In this chart, red bubbles mark times when retail trading has spiked significantly.

According to the analyst, these periods have historically been linked to local peak prices, suggesting that increased speculative behavior often precedes short-term corrections. Conversely, the green and pink bubbles, representing periods of declining retail activity, are typically associated with more stable or neutral price phases.

The fundamental interpretation is that as the DOGE futures market becomes saturated with retail participants, the likelihood of momentum exhaustion increases. For traders, these retail spikes could serve as a potential warning signal for short-term reversals.

As Kesmeci notes, this data can be used in conjunction with other technical and on-chain metrics to build a more comprehensive view of market sentiment, especially for volatile assets like Dogecoin. The analysis supports a more cautious approach as retail enthusiasm dominates trading volume.

Technical forecasts indicate the potential for continued bullishness

While future data shows caution around potential peaks driven by retail, other technical views suggest further bullish potential. Cryptocurrency analyst Javon Marks recently shared a perspective indicating that DOGE may be positioned to continue towards new all-time highs.

According to Marks, the asset has confirmed a major bullish signal on its chart, indicating that another bullish momentum may have begun. He predicts that the next major target is a price higher by nearly 200% from the current price.