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- DOGE defended $0.22 support, sparking a 9% rally.
- Futures open interest surged to $4.23B, signaling strong participation.
- Traders eye $0.30 as the next resistance level.
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Dogecoin [DOGE] staged a sharp recovery this week after slipping to $0.22, a level that aligned with its 100-day Exponential Moving Average (EMA). The bounce quickly turned into a 9% daily gain, signaling that bulls remain firmly in control of the broader trend.
Bulls Hold the Line at Key Support
The $0.22 zone has proven critical for Dogecoin, acting as a floor during recent market pullbacks. Defending that level not only preserved the uptrend but also set the stage for a technical breakout. DOGE has since climbed above its 20-day EMA at $0.24 and its 50-day EMA at $0.23, further reinforcing bullish sentiment. Traders are now turning their eyes to the $0.30 resistance level, a zone that has capped previous rallies.
On-Chain Data Adds Fuel
On-chain activity appears to support the technical picture. CoinGlass data shows Dogecoin Futures Open Interest surged to $4.23 billion, suggesting both speculative traders and institutional players are increasing exposure. Rising open interest often points to heightened market participation, which can magnify price swings in either direction.
Liquidity data also highlights the potential for further upside. Heatmaps from CoinGlass show clusters of liquidity above $0.25, which often act as magnets for price when momentum is building.
History Suggests More Upside
Dogecoin has followed a similar pattern before. Earlier this year, rebounds off the same rising trendline sparked rallies of 15–20% in just a matter of days. If history repeats, the memecoin could see another strong move toward the $0.30 mark.
Still, risks remain. A wave of profit-taking or a spike in funding rates could cool the rally. But for now, both technicals and positioning tilt in favor of the bulls.
Dogecoin’s latest rebound reinforces the narrative that $0.22 is a key level to watch. With technical and on-chain signals aligning, traders see $0.30 as the next battleground.
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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.
Also Read: Dogecoin Trading Range Tightens: Key Support and Resistance Levels to Watch
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
