Dogecoin (DOGE), the world’s largest meme coin with a market cap of over $13.35 billion, is poised for a significant rally. On the daily chart, DOGE is showing a bullish divergence in the relative strength index (RSI), indicating a possible trend reversal from down to up.
Bullish Divergence in Dogecoin
Since early August 2024, DOGE has been making lower lows while the RSI technical indicator has been making higher lows. This indicates that the selling pressure that DOGE has been experiencing for a long period may ease in the coming days. Traders and investors are looking at the bullish divergence as a potential buy signal.
Dogecoin Price Prediction
According to expert technical analysis, DOGE is currently at a critical support level of $0.095. Moreover, it is trading above the 200 exponential moving average (EMA) on the weekly time frame, indicating an uptrend.
Based on historical price momentum, whenever the DOGE price reaches this support level, it usually shows a 15% – 20% gain. However, due to the bullish divergence, there is a high probability that it could rise by 32%, reaching $0.128 this time.
Bullish indicators on the network
CoinGlass DOGE liquidation data shows that short sellers are still dominant and potentially liquidating long positions on the daily and weekly timeframes. On the weekly timeframe, the main liquidation levels are at $0.0956 on the downside and $0.103 on the upside as traders are over-leveraged at these levels.
If sentiment remains bearish and DOGE fails to hold at $0.0956 or the 200 EMA, long positions worth about $4.78 million will be liquidated. Conversely, if sentiment changes and the price rises to $0.103, short positions worth about $22 million will be liquidated.
Short sellers’ trading rates are almost 4-5 times higher than bulls’ long positions, which simply indicates that bears are dominating.
Open Interest Rising and Price Momentum
At the time of publication, Dogecoin (DOGE) is trading around $0.0968 and has fallen nearly 2% in the last 24 hours. Despite the price decline, its open interest has increased by 1% in the last hours and 1.5% in the last four hours. This rising open interest shows the growing interest of investors and traders in DOGE amid the market downturn.
