Bitcoin Fell, but Dogecoin Surged…Rechallenging $0.10

▲ Dogecoin (DOGE)/ChatGPT generated image ©

Dogecoin has embarked on an independent rebound, backed by an influx of derivatives funds, even amidst Bitcoin's bear market.

On April 28 (local time), according to CoinMarketCap, a cryptocurrency market tracking site, Dogecoin (DOGE) traded at $0.0995, up 1.54% over 24 hours. Unlike Bitcoin (BTC), which fell by 1.29% during the same period, Dogecoin showed an independent movement, attracting market attention.

The key background for the rise is a surge in open interest in the derivatives market. Open interest on Binance surged by 39.8%, increasing by approximately 920 million DOGE, or about $100 million, over five days, and total open interest reached $629 million. In addition, the opening of new long positions worth $274,000 in the $0.10 range also stimulated short-term speculative demand.

Expectations of regulatory clarity also supported investor sentiment. In the market, the fact that the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) classified Dogecoin as a digital commodity along with Bitcoin and Ethereum was cited as a favorable factor. This is interpreted as a factor that reduces the burden on institutional demand in the long term.

Technically, the defense of the $0.0976 support level is key in the short term. Dogecoin is trading above its 7-day simple moving average of $0.0976, and the Relative Strength Index (RSI) remains in the neutral zone at 58.52. If this range is maintained, the possibility of retesting the recent high of $0.102 is open.

However, as the rise is based on leverage, the risk of a pullback is not insignificant. If it falls below $0.0976, liquidation pressure will increase, and it could drop to $0.0937, which is the 38.2% Fibonacci retracement level. The market views whether it can stabilize above $0.10 as a key turning point for Dogecoin's short-term trend.

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