Dogecoin Price Defies Market Expectations

Dogecoin Price Defies Market Expectations

Dogecoin has shown resilience in recent days, registering a 7% gain before experiencing a minor pullback. This surge allowed the cryptocurrency to break out of a bullish pattern, positioning DOGE for a potential 22% rally, provided it can overcome a critical resistance level. However, despite this positive price action, a bearish sentiment is prevailing among traders, fueled by substantial exchange inflows observed yesterday. This raises the question: Are traders plotting to drive DOGE’s price down, and can it withstand the pressure?

Currently trading at $0.1039, DOGE has dipped by 1.2% over the past 24 hours. This slight decline contrasts sharply with the growing bearish sentiment surrounding the meme coin.

Adding to the intrigue, Elon Musk recently drew attention to Dogecoin with a cryptic post about accepting a fictional Cabinet position abbreviated as D.O.G.E. In the same breath, he reignited his feud with UK justice minister Keir Starmer by labeling the country a “police state.”

On Tuesday, Dogecoin experienced a net exchange inflow of $4.43 million, the highest since July 20, 2024. Such activity suggests a potential move to push DOGE’s price lower. Supporting this theory, data from Coinglass reveals that the open interest (OI) in DOGE has increased while the price has fallen over the last 24 hours. Typically, this pattern indicates that traders are taking Short positions, which is bearish for the asset.

Further analysis from the Coinglass Liquidation Map shows a higher cumulative Short Liquidation Leverage compared to Longs, reflecting traders’ anticipation of a price drop.

Despite the negative market sentiment, technical indicators suggest Dogecoin could see a 22% rise in the coming days.

DOGE Technical Analysis: Key Level at $0.1085

Dogecoin recently broke out of a falling wedge that had been forming since early August, a signal of potential bullish momentum. The latest candlestick pattern indicates a strong upward movement out of this triangle, typically a bullish sign following a period of consolidation.

DOGE may encounter resistance at $0.1059, which aligns with the upper Bollinger Band. A break beyond this level could propel the price towards $0.1274, marking a 22% increase.

The price has approached the upper Bollinger Band, indicating strong momentum. Sustained trading near or above this level could suggest continued bullish pressure. The bands are also contracting, often a precursor to a significant price move.

The Coppock Curve, currently at 3.02571, further supports this bullish outlook, indicating upward momentum as it trends higher.

For those already holding DOGE, as long as the price stays above the $0.0995 support level, it remains a promising long position. The next major target beyond $0.1274 could be the $0.1500 level, depending on broader market conditions.

However, if DOGE’s price falls back into the triangle, it could indicate market weakness, potentially leading to a decline towards $0.0985 and even $0.0800.