Dogecoin (DOGE), Long/Short Ratio at 1-Month 'High'...Rebound Spark Detected

▲ Dogecoin (DOGE)

The downward pressure on Dogecoin (DOGE) is easing. Bullish bets in the derivatives market and technical rebound signals have been detected simultaneously.

According to FXStreet on August 4 (local time), Dogecoin is holding at the $0.07 support level after falling 3.5% last week. While the mid-to-long-term price trend remains bearish, derivatives indicators, which reflect investor sentiment, point to a potential recovery.

Dogecoin's long/short ratio, compiled by CoinGlass, recorded its highest level in a month at 1.25. A ratio above 1 means there are more long positions expecting a price increase than short positions. The funding rate also turned positive on July 24, now standing at 0.0074%.

Technical indicators also showed signs of slowing selling pressure. Although Dogecoin's price hit a lower low on August 1, the daily RSI (Relative Strength Index) formed a higher low than before. This indicates a bullish divergence, where price and RSI move in opposite directions. AO also formed higher lows, suggesting that downward momentum is weakening.

However, Dogecoin remains below its 50-day, 100-day, and 200-day exponential moving averages (EMAs) at $0.075, $0.083, and $0.1, respectively. If it breaks above $0.075, the next resistance levels are $0.08 and $0.083, where the downtrend line is located. After that, $0.088, $0.1, and $0.102 are the zones that will hinder further upward movement.

On the downside, $0.07 is the primary support level. If the daily close is below the year's low of $0.067, the decline could extend to the psychological support level of $0.065. Despite bullish divergence and improved derivatives indicators, the recovery of key moving averages is presented as a crucial criterion for a trend reversal.

[Key Article Summary]

-Dogecoin's long/short ratio reached a one-month high of 1.25, and the funding rate remained positive at 0.0074%.

-While the price formed a lower low, the RSI formed a higher low, indicating a bullish divergence that signifies weakening selling pressure.

-Breaking above $0.075 is the first hurdle for a rebound, and if $0.067 breaks, a further decline to $0.065 is possible.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*