Dogecoin (DOGE), the world’s biggest meme coin by market capitalization, is on the cusp of a significant upside rally. Recent on-chain metrics are flashing bullish signals, indicating a potential surge in price. Over the past few days, the sentiment across the cryptocurrency landscape has shifted positively, fostering a bullish environment.
DOGE’s Bullish On-chain Metrics
Amid this market reversal, several on-chain metrics for DOGE, such as the Long/Short ratio, future open interest, and OI-weighted funding rates, are signaling potential buying opportunities. These indicators hint at an imminent massive rally.
According to the on-chain analytics firm Coinglass, DOGE’s Long/Short ratio currently stands at 1.042, which denotes a bullish market sentiment among traders. Additionally, the future open interest has increased by 8.9% in the last 24 hours and 4.8% in the last four hours. This rising future open interest suggests that bulls are actively buying, with traders potentially building more long positions.
Traders and investors often use a combination of rising open interest and a Long/Short ratio above 1 while building long positions. Currently, 51.20% of top DOGE holders have long positions, whereas 48.80% hold short positions.
Dogecoin Technical Analysis and Upcoming Levels
Expert technical analysis reveals that DOGE is on the verge of breaking a strong resistance level at $0.112. Should DOGE break through this resistance level and close a daily candle above $0.113, there is a strong possibility that the price could soar by 20% to reach the $0.134 level in the coming days.
Presently, DOGE is trading below the 200 Exponential Moving Average (EMA) on a daily time frame, which indicates a downtrend. The 200 EMA is a crucial technical indicator used by traders and investors to determine whether an asset is in an uptrend or downtrend.
Current Price Momentum
At the time of writing, DOGE is trading near $0.109 and has experienced a price surge of over 4.5% in the last 24 hours. However, during the same period, its trading volume dropped by 25%, indicating lower participation from traders amid the market reversal.
It is important to note that this bullish thesis will only hold if DOGE closes its daily candle above the $0.113 level; otherwise, it may fail to sustain the upward momentum.
