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- DOGE reclaimed $0.07, reaching a two-week high of $0.073 as volume climbed 72%.
- Short liquidations topped $1.5 million, while futures netflow surged 172% to $9.36 million.
- $0.075 is the next key resistance, with $0.08 possible if spot buying strengthens.
Dogecoin (DOGE) has regained momentum after defending the $0.07 support level, climbing to a two-week high of $0.073 before pulling back slightly. At press time, DOGE was trading around $0.0721, up 2.93% over 24 hours.
The move came alongside a sharp increase in market activity. Trading volume jumped 72% to more than $500 million, while Dogecoin’s market capitalization rose 13% to approximately $12.3 billion. The combination suggests renewed capital and trading interest in the memecoin.
Short Liquidations Add Fuel to DOGE Rally
The latest Dogecoin price rally appears to have been amplified by activity in the derivatives market. As DOGE moved above $0.07, short positions were liquidated, forcing bearish traders to buy back their positions.
CoinGlass data showed more than $1.5 million in DOGE short positions were liquidated. These forced purchases added buying pressure and helped push the cryptocurrency higher.
Futures activity also improved. Dogecoin futures inflows reached $381 million against $372 million in outflows, lifting futures netflow 172% to $9.36 million. The positive reading marked a notable change after the metric had struggled to close positively in recent months.
Derivatives Traders Turn More Bullish
The broader derivatives market also showed stronger participation. Derivatives volume climbed 114% to $1.22 billion, while open interest increased 5.3% to $1.23 billion.
The Long/Short Ratio reached 1.01 overall and moved above 2 on Binance and OKX. That positioning indicates traders were increasingly favoring long positions, although it does not guarantee that the spot market will sustain the move.
Technically, DOGE also moved above its nine-day and 21-day moving averages. Its Relative Strength Index (RSI) climbed to 53, suggesting that buying momentum had improved without reaching traditionally overbought levels.
Can Dogecoin Reach $0.08?
The next major test for Dogecoin is the $0.075 resistance zone. A sustained move above that level could open the way toward $0.08 if spot demand continues to strengthen.
There is also a potential warning sign. Spot netflow reached a monthly high of $5.23 million on August 11 before cooling. That decline could indicate some holders were taking profits following the rally.
For DOGE to maintain its bullish momentum, derivatives-driven demand will likely need support from spot buyers. If selling pressure increases and speculative interest fades, the token could fall back toward the $0.070 area.
Also Read: Dogecoin Drops 90% From Peak: Is This the Biggest Buying Opportunity Yet?
Dogecoin’s rebound above $0.07 has been supported by stronger volume, short liquidations and renewed futures activity. While technical indicators have improved, DOGE still needs sustained spot demand to clear $0.075 and challenge $0.08. The next move will depend on whether buyers can turn the current derivatives-driven rally into broader market demand.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
