Main Takeaways:
- DOGE is presently building upward strength after testing a significant support level at $0.115.
- The meme coin’s increasing funding rate shows that more traders are becoming interested in it and are betting on its price going up.
Dogecoin (DOGE) is indicating early signals of a possible trend shift after weeks of volatile and bearish market behaviour.
The top memecoin recently returned to an important support level that had helped drive its price rise after a period of sideways trading, just before the last big price surge.
The buying pressure from the order block caused DOGE to rise sharply by around 34% before the price dropped. Since it tested that level on the weekly chart, DOGE has been steadily gaining in value.
According to this recovery from this crucial zone, investors believe it has not only rebuilt trust but has also generated new momentum-driven demand.
With this bounce from this critical zone, holder confidence has not only been restored, but it has also attracted new momentum-driven interest.
This quick rebound is a strong technical sign, it is often seen as a sign that there is strong buying interest.
DOGE Market Shows Bullish Momentum
The price rally is supported by the memecoin’s Weighted Funding Rate, which has been following an interesting pattern. Over the past three days, the Funding Rate has been steadily going up.
This indicates that more market users are ready to pay extra to maintain their long positions open in the expectation of additional price growth.
The surge in DOGE’s financing rate always indicates a positive mood in the futures exchange, and also a change in attitude, from being cautiously hopeful to being more confident in buying.
In most cases, increasing financing rates, combined with price increases, show that buyers are gaining momentum and short traders are withdrawing from market fluctuations.
Memecoin Momentum: What Could Happen Next?
Even with a strong beginning, DOGE investors need to track whether bulls can keep control. A drop in volume or a drop in the Funding Rate could suggest that the bulls are losing interest.
On the other hand, if Dogecoin continues to stay above the demand area while rising consistently, the reversal scenario gains more significance.
Overall, DOGE looks to be at a crucial changing point. The upcoming few days will be essential in establishing whether this is a steady trend shift or only another temporary rally.
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Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
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