Dogecoin (DOGE), the largest meme coin by market cap, is showing strong bullish signals in its on-chain metrics, indicating a potential upside rally in the near future. The overall sentiment in the cryptocurrency market has shifted towards a bullish outlook, setting the stage for DOGE to potentially soar to new heights.
One key indicator to watch is DOGE’s Long/Short ratio, which currently stands at 1.042, signaling a bullish market sentiment among traders. Additionally, the future open interest for DOGE has seen a notable increase of 8.9% in the last 24 hours and 4.8% in the last four hours. This uptick in future open interest suggests that bulls are actively entering the market and building long positions, further supporting a potential rally.
In addition, 51.20% of the top DOGE holders currently hold long positions, while 48.80% hold short positions. This distribution further reinforces the bullish outlook for DOGE as more traders are leaning towards long positions, anticipating a price increase.
From a technical analysis perspective, DOGE is approaching a key resistance level at $0.112. A successful breakout above this level and a daily close above $0.113 could pave the way for a 20% surge in price, potentially reaching the $0.134 level in the days ahead.
Currently, DOGE is trading below the 200 Exponential Moving Average (EMA) on a daily timeframe, indicating a downtrend. The 200 EMA is a widely used technical indicator that helps traders determine the direction of an asset’s trend.
As of now, DOGE is trading around $0.109, with a price increase of over 4.5% in the last 24 hours. However, trading volume has decreased by 25%, suggesting lower participation from traders amidst the market reversal.
For DOGE to maintain its bullish momentum, it will be crucial for the coin to close above the $0.113 level on a daily basis. Failure to do so could potentially lead to a reversal of the current bullish trend.
Overall, DOGE’s on-chain metrics and technical analysis point towards a potential upside rally in the near future. Traders and investors should closely monitor key levels and market dynamics to capitalize on the anticipated price movement.