Amid prolonged market weakness, memecoin has signaled that the market is recovering and made slight gains overall. With Memecoins showing slight bullish momentum, Dogecoin (DOGE) successfully defended $0.09 and then bounced to $0.093 before pulling back slightly.
At press time, DOGE It traded at $0.092 after rising slightly by 1.86% on the daily charts. This price increase was supported by a 7% increase in trading volume exceeding $1 billion, reflecting market momentum.
Dogecoin: Spot buyers maintain key levels
Dogecoin bulls have tried to defend and flip the $0.09 support over the past few days but without success. While the market was given a signal of recovery, the bulls made a strong breakthrough and successfully achieved their goals.
Even Bulls vs. The Bears indicator turned positive again and rose to 6.8 after falling into negative territory. The recovery here showed that buyers had stepped in and displaced the bears.
According to CoinGlass data, DOGE recorded $82.79 million in Spot outflows against $68.64 million in inflows. As a result, memecoin’s Spot Netflow fell 148% to -$14.25 million.
Exchanges appear to record more withdrawal orders than deposit orders, especially when outflows outpace inflows.
Such a setup on exchanges reduces the supply available for immediate sale, effectively increasing scarcity and creating perfect conditions to accelerate bullish momentum.
Futures continue their extreme downward trend
Despite significant capital flows into the spot market, derivatives market participants continued to reduce their exposure.
While DOGE showed slight upward momentum, investors refrained from piling in, especially on the long side. This is due to the increase in long position liquidations.
According to CoinGlass data, over $2.8 million in long positions were liquidated. This liquidation rate increased investors’ fear of taking on more long positions.
Thus, a large amount of capital flowed into the Futures market and there was an outflow of over 608.4 million dollars. This shows that most participants have closed their positions and risk appetite has decreased.
Such market conditions have weakened the Dogecoin market and potentially face further losses on the price charts.
What’s next for DOGE?
Dogecoin is currently at a turning point; Futures remain bearish as the spot market shows greater determination to pull the market out of recession. These two conflicting forces leave DOGE facing the fate of which side manages to defeat the other.
Looking at the Stochastic RSI, momentum is bullish, rising from 7 to 23, reflecting increasing buying pressure. Despite this transition, the momentum index remains stuck in the oversold zone, indicating the presence of sellers.
Even more worrying for Memecoin prospects, the future Big Trend suggested another shift. According to the future pattern, DOGE could fall below $0.09 again, drop to $0.086, and $0.080 could become the critical support.
However, if Spot demand outweighs Futures selling, Dogecoin could hold above $0.09 and target the $0.106 resistance.
Final Summary
- DOGE rose slightly, converting $0.09 to reach $0.093 and then fell to $0.092.
- Dogecoin saw new capital inflow into the Spot market but Futures remained bearish and posed a pullback risk.
