Dogecoin Rises 8%: Does This Mean the End of the Bear Trend?
Contributor
- Dogecoin is up 8% in the last 24 hours.
- Metrics suggest a possible reversal at the key level of $0.1145.
Despite recent price swings, Dogecoin [DOGE] has experienced a significant increase in value, up 8% in the last 24 hours. This surge followed a 32% decline over the past two weeks, resulting in concerns about its future. However, indications of a possible bullish reversal are emerging, with the current price hovering around $0.1247. The 24-hour trading volume was approximately $851.62 million, with a market cap of $18.03 billion.
Source: TradingView
The Stochastic RSI indicates an oversold zone that could precede a bullish trend reversal. However, the Moving Average Convergence Divergence indicator shows fading bearish momentum as recent bearish bars fade over time.
Are social volume and development activities fueling a trend reversal?
Santiment data showed an increase in DOGE social volume and development activities.
This increase suggests renewed interest in the Dogecoin community. The increase in development activity could indicate ongoing improvements related to DOGE that could potentially attract more investors.
Source: Santiment
Liquidation and Short Squeezes
According to Coinglass’ liquidation map data, DOGE has had several spikes in both long and short liquidations, suggesting extreme volatility and potential short squeezes.
This scenario can fuel rapid price increases, as seen in the recent DOGE rally.
Source: Coingalss
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Furthermore, the long-short ratio data shows a positive trend, suggesting that long position investors are in control of the market. Buying pressure at this crucial level could increase the upward pressure on Dogecoin, thereby pushing the price higher.
Source: Coinglass
