Amid extended market weakness, memecoins signaled a market recovery, posting slight gains across the board. With memecoins showing slight upward momentum, Dogecoin (DOGE) successfully defended $0.09 and then jumped to $0.093 before pulling back slightly.
At press time, Doug It traded at $0.092, after a slight rise of 1.86% on the daily charts. This price rise was supported by a 7% increase in trading volume, which exceeded $1 billion, reflecting market momentum.
Dogecoin: Spot Buyers Defend Key Levels
Dogecoin bulls have tried to defend and flip the $0.09 support over the past few days, without success. With the market signaling a recovery, the bulls jumped in aggressively and successfully achieved their target.
In fact, the bulls versus bears indicator turned positive again, rising to 6.8 after falling into negative territory. The bounce here indicates the intervention of buyers and the exodus of bears.
According to CoinGlass data, DOGE recorded $82.79 million in spot outflows compared to $68.64 million in inflows. As a result, memecoin’s Spot Netflow fell 148% to -$14.25 million.
It is worth noting that when outflows exceed inflows, this indicates that exchanges registered more withdrawal orders than deposit orders.
Such a setup on exchanges reduces the supply available for immediate sale, effectively increasing scarcity and creating the ideal conditions for accelerating upward momentum.
Futures remain excessively bearish
Although significant capital has flowed into the spot market, derivatives market participants have continued to reduce their exposures.
While the DOGE index showed slight upward momentum, traders avoided accumulating, especially on the long side. This is due to increased liquidation of long positions.
According to CoinGlass data, over $2.8 million in long positions were liquidated. This liquidation rate amplified investors’ fears of taking more long positions.
As such, massive capital has flowed into the futures market, with outflows of over $608.4 million. This indicates that most participants closed their positions, indicating low risk appetite.
These market conditions have left the Dogecoin market vulnerable and vulnerable to further losses on the price charts.
What’s next for DOGE?
Dogecoin is currently at a crossroads, with the spot market showing greater determination to pull the market out of the recession, while futures remain bearish. These two opposing forces expose DOGE to the fate of whichever side manages to overcome the other.
Looking at the Stochastic RSI, the momentum has made a bullish crossover, rising from 7 to 23, reflecting increased buying pressure. Despite this crossover, the Momentum indicator is still firmly stuck in the oversold territory, indicating the presence of sellers.
What is even more worrying for Memcoin’s prospects is that the future megatrend points to another misstep. Depending on the future model, DOGE could fall below $0.09 again, falling to $0.086, with $0.080 as crucial support.
However, if spot demand exceeds futures sales, Dogecoin could remain above $0.09 and target resistance at $0.106.
Final summary
- DOGE rose slightly, fluctuating $0.09, reaching a high of $0.093, before retreating to $0.092.
- Dogecoin saw new capital inflows into the spot market, but futures remained bearish, posing a downside risk.
