Dogecoin Price Analysis: Will DOGE Recovery Hit $0.17?

Dogecoin rebounds 15% after Black Monday, but rising short positions and bearish indicators suggest strong resistance near $0.15.

As the crypto market experiences a quick V-shaped reversal following Black Monday, meme coins are gradually gaining momentum. The total meme coin market capitalization has risen by 10%, reaching $42.32 billion, with Dogecoin leading the charge.

Currently, Dogecoin is trading at $0.1501, showing a significant recovery of nearly 15% over the past 24 hours. With a lower price rejection indicating the underlying dominance of bullish players, the question remains: Will Dogecoin be able to bounce back from the $0.15 resistance?

Dogecoin Price Analysis Reveals Rising Reversal Chances

The daily chart shows that the Dogecoin price trend failed to surpass the 23.6% Fibonacci level at $0.1781. After an 11% drop on Sunday, Dogecoin formed an evening star pattern.

Under bearish pressure, Dogecoin formed a swing low at $0.13, marking its lowest trading price in the past six months.

However, the swift turnaround in the crypto market led to a rapid recovery for Dogecoin, forming a Doji candle. During the pullback, the bearish engulfing candle from Sunday broke through the critical previous swing low at $0.15397.

This breakdown triggered sell signals in multiple technical indicators. The MACD and signal lines have formed a bearish crossover, with negative histograms making a comeback.

Moreover, the 100-day and 200-day simple moving averages have also crossed negatively. As a result, the technical indicators continue to present a bearish outlook.

In the event of a bullish revival above the $0.1397 horizontal support level, the uptrend could challenge the 23.6% Fibonacci level at $0.1781. On the other hand, a bearish extension could see Dogecoin test the $0.10 psychological level.

Short-Term Surge in Short Positions Warns of Further Pullback for Dogecoin

As Dogecoin’s price bounces back, bullish traders are increasing their positions in Dogecoin futures. The open interest has surged by 10.54%, reaching $1.37 billion.

Currently, the funding rate stands at 0.0055%, indicating bullish sentiment. However, the long-to-short ratio has been on the decline over the past 24 hours.

The sudden drop in the long-to-short ratio from 1.0555 to 0.8591 reflects a significant shift in positions, with long positions increasing from 48.65% to 53.79%. This suggests that the derivatives market shows a growing bearish sentiment amid heightened volatility.