Dogecoin at a crossroads: Will DOGE breakout to $0.1 or see another pullback?

Amid extended market weakness, memecoin signaled market recovery, making slight gains across the board. With memecoins showing slight upside momentum, Dogecoin [DOGE] successfully defended $0.09 and then jumped to $0.093 before retracing slightly.

At press time, DOGE traded at $0.092, after slightly rising by 1.86% on the daily charts. This price uptick was backed by a 7% increase in trading volume, which exceeded $1 billion, reflecting market momentum. 

Dogecoin: Spot buyers defend key levels

Dogecoin bulls have attempted to defend and flip $0.09 support over the past few days, with no success. As the market signaled a recovery, bulls jumped in with strength and successfully achieved their goal. 

In fact, the Bulls vs. Bears indicator turned positive again, rising to 6.8 after falling into the negative zone. A rebound here suggested that buyers stepped in and displaced bears.

According to CoinGlass data, DOGE recorded $82.79 million in Spot outflows compared to $68.64 million in inflows. As a result, the memecoin’s Spot Netflow dropped 148% to -$14.25 million. 

Notably, when outflows outpace inflows, it suggests that exchanges recorded more withdrawal orders than deposit orders.

Such a setup on exchanges reduces the supply available for immediate sale, effectively increasing scarcity and creating perfect conditions to accelerate upside momentum. 

Futures remain overly bearish

Although significant capital has flowed into the Spot market, derivatives market participants have continued to reduce their exposure.

While DOGE showed slight upside momentum, traders have avoided piling in, especially on the long side. This is due to increased long-position liquidations.

According to CoinGlass data, over $2.8 million in longs were liquidated. This liquidation rate amplified investors’ fear of taking more long positions.

As such, massive capital flowed into the Futures market, with over $608.4 million in outflows. This suggests that most participants closed their positions, indicating reduced risk appetite.

Such market conditions have left the Dogecoin market weakened and exposed to potentially more losses on its 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 a slump, while Futures remain bearish. These two conflicting forces expose DOGE to the fate of whichever side manages to overwhelm the other.

Looking at the Stochastic RSI, the momentum made a bullish crossover, rising from 7 to 23, reflecting increased buying pressure. Despite this crossover, the momentum index remains firmly stuck in oversold territory, signaling the presence of sellers.

Even more worrying for memecoin prospects, the future Grand Trend suggested another slip. Based on the future model, DOGE could drop below $0.09 again, falling to $0.086, with $0.080 as critical support.

However, if Spot demand outweighs Futures selling, Dogecoin could hold above $0.09 and target $0.106 resistance.

Final Summary

• DOGE rose slightly, flipping $0.09, touching a high of $0.093, before retracing to $0.092. 
• Dogecoin saw fresh capital inflows into the Spot market, but Futures remained bearish, posing a risk of pullback.