Dogecoin Eyes 20% Rally, On-chain Data Flashes Bullish Signal
Zameer Attar21 Sept 20242 min read
Dogecoin (DOGE) the world’s biggest meme coin by market cap is poised for a significant upside rally as its on-chain metrics flash a bullish signal. In the past few days, the overall sentiment across the cryptocurrency landscape has shifted and appears bullish.
DOGE’s Bullish On-chain Metrics
Amid this market reversal, DOGE’s on-chain metrics such as Long/Short ratio, Future open interest, and OI-weighted funding rates are signaling potential buying opportunities and hints that a massive rally is imminent.
According to the on-chain analytics firm Coinglass, DOGE’s Long/Short ratio currently stands at 1.042, indicating bullish market sentiment among traders. Additionally, its future open interest has increased by 8.9% in the last 24 hours and 4.8% in the last four hours. This rising future open interest suggests bulls are on a buying spree, with traders potentially building more long positions.
Traders and investors often use a combination of rising open interest and a long/short ratio above 1, while building long positions. Currently, 51.20% of top DOGE holders have long positions, while 48.80% hold short positions.
Dogecoin Technical Analysis and Upcoming Levels
According to expert technical analysis, DOGE is on the verge of breaking a strong resistance level at $0.112. If it breaks out this resistance level and closes a daily candle above the $0.113 level, there is a strong possibility that the DOGE price could soar by 20% to reach the $0.134 level in the coming days.
As of now, DOGE is trading below the 200 Exponential Moving Average (EMA) on a daily time frame, indicating a downtrend. The 200 EMA is a technical indicator used by traders and investors to assess whether an asset is in an uptrend or downtrend.
Current Price Momentum
At press time DOGE is trading near $0.109 and has experienced a price surge of over 4.5% in the last 24 hours. During the same period, its trading volume dropped by 25%, indicating lower participation from traders amid the market reversal.
However, this bullish thesis will only hold if DOGE closes its daily candle above the $0.113 level, otherwise, it may fail.
