Amidst continued market weakness, memecoin signaled a market recovery, with all major cryptocurrencies showing slight gains. As memecoin exhibited a modest upward trend, Dogecoin successfully held the $0.09 mark, subsequently rising to $0.093 before slightly retreating.
As of press time, Dogecoin (DOGE) was trading at $0.092, showing a slight increase of 1.86% on the daily chart. This price increase was driven by a 7% rise in trading volume, exceeding $1 billion, reflecting strong upward momentum in the market.
Dogecoin: Spot buyers hold firm on key price levels
Over the past few days, Dogecoin bulls attempted to hold and break through the $0.09 support level, but failed. As the market showed signs of recovery, bulls entered the market aggressively and ultimately achieved their target.
In fact, the bullish/bearish indicator turned positive again after falling into negative territory, rising to 6.8. This rebound indicates that buyers entered the market and suppressed the bears.
According to CoinGlass data, Dogecoin (DOGE) saw a spot outflow of $82.79 million, while inflows totaled $68.64 million. Consequently, Dogecoin's net spot inflow decreased by 148% to -$14.25 million.
It is worth noting that when outflows exceed inflows, it indicates that the exchange is recording more withdrawal orders than deposit orders.
This exchange setup reduces the supply available for immediate sale, effectively increasing scarcity and creating perfect conditions for accelerating price increases.
The futures market remains overly pessimistic.
Despite a large influx of funds into the spot market, derivatives market participants continue to reduce their exposure.
Despite a slight upward trend in Dogecoin (DOGE), traders haven't flocked to it, especially on the long. This is mainly due to increased liquidation of long positions.
According to CoinGlass data, over $2.8 million in long positions were forcibly liquidated. This forced liquidation rate has exacerbated investor concerns about continuing to build long positions.
This market condition has led to a weak Dogecoin market, and further declines are possible on the price chart.
What is DOGE's next development direction?
Dogecoin is currently at a crossroads. The spot market is showing stronger determination to pull the market out of its slump, while the futures market remains bearish. These two conflicting forces place Dogecoin's fate in a situation where one side can prevail over the other.
The Stochastic Relative Strength Index (SRSI) shows a golden cross in momentum, rising from 7 to 23, reflecting increased buying pressure. Despite the golden cross, the momentum index remains deep in oversold territory, indicating that selling pressure remains strong.
However, if spot demand exceeds futures selling, Dogecoin may hold above $0.09 and challenge the resistance level of $0.106.
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