Key Takeaways:
-
The Doge has formed a double bottom after destroying a long-term dowrend, indicating a rally to the new year-to-date highs.
-
Doge futures are open interest, volume of volumes, and income income shows increased demand and reduced sales pressure.
Dogecoin (Doge) shows strong signs of rallying higher as technical indicators and onchain metrics that are aligned to support bullish continuity. Currently trading above $ 0.21, Doge is forming a textbook that is a double pattern in the sun -day chart, a historical reliable return formation. This bullish structure develops after the Doge is definitely exploding from a long downward channel, which further confirms a move to momentum.
Following the breakout, Memecoin enters a phase of integration between $ 0.19 and $ 0.21, which can be viewed as a healthy retest and handle after a breakout. An immediate break above $ 0.21 is likely to pave the way to $ 0.25, a major level that completed the double pattern underneath. It will open a path to $ 0.48, a level last seen in December 2024.
Noteworthy, DOGE’s larger structure in the weekly chart adds additional weight to its bullish case. Crypto analyst trader tardigrade mentioned That the crypto asset is trading within an ascending expansion of the wedge, a technical formation known for potential parabolic breakout. Price action suggests that the Doge is preparing to try and potential violation of this upper boundary.
Based on the historic preceding and structural analysis, such a move can put a foundation for a 300% rally once $ 0.25 is reclaimed, with a $ 1 level emerging as a realistic long-term target when the Doge removes $ 0.47 resistance.
Related: Crypto Spot Trading Down 22% in Q2 Despite Bitcoin Rally: Report
Onchain Doge data supports a bullish bias
From an onchain data perspective, Doge scale reflects this setup. Open Interest (OI) in Doge Futures Markets saw a massive jump in July, rising from $ 1.70 billion to $ 2.85 billion, that is, an increase of 67%, indicating a modified speculation -haka -haka activity.
Despite the increase in the OI, funding rates remain neutral, which has signaled that leveraged longs have not been warmed to the market. Consistently, the integrated volume of the Delta (CVD) continues to rise slowly, exposing the net purchase of pressure to the market area, a healthy sign of true demand that supports price action.
Adding additional weight is the long-term net owner who did not realize that income/loss (LTH-NUPL), which now enters the optimism-anxiety zone. This psychological zone indicates that long-term Doge holders sit on moderate income and transfer emotions from uncertainty (fearful hope) towards careful confidence.
Historically, every major Doge Breakout, including 2021 and 2024 Breakout, began once the LTH-NUPL moved into this zone. It reflects a market where long-term holders begin to reduce pressure sale and allow short to mid-capital flows to drive price action.
Related: Ethereum Open Interest Hits All-Time High as Trader Predicts $ 30K Top Price
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
