Dogecoin Price Rebounds: Can DOGE Reclaim the $0.20 Mark?

Dogecoin bounces off the $0.17 support level with bullish RSI and MACD signals. Can DOGE reclaim $0.20 amid market optimism and rising open interest?

With the broader market recovering, meme coins are back in action. The biggest meme coin, Dogecoin, is up 1% at press time, signaling a bullish comeback as it holds ground at $0.17. Will this short-term recovery help Dogecoin reclaim the $0.20 psychological level? Let’s find out.

Dogecoin Price Reversal Targets $0.20

Dogecoin bounces off a key support trend line on the daily chart as the prevailing downtrend fades. With a lower price reaction from the $0.17 demand zone, Dogecoin prepares for a bullish comeback.

With its first bullish candle in five days, Dogecoin is aiming to test the 23.60% Fibonacci retracement level at $0.2135. Supporting the bullish outlook, the daily RSI line has turned positive in the near-oversold region, signaling a comeback.

Furthermore, the RSI shows a bullish divergence at the previous two bottoms formed near the $0.17 demand zone, hinting at a double-bottom reversal. Additionally, the close proximity of the MACD and signal lines suggests an impending bullish crossover. Hence, the technical indicators maintain a positive stance on Dogecoin.

On the downside, a close below the $0.17 demand zone could test the $0.1298 support floor.

Optimism Surges in DOGE Derivatives Despite Long Liquidation Spike

As broader market optimism grows, confidence among Dogecoin traders in the derivatives market is rising. CoinGlass data shows open interest has surged by 2.85%, reaching $1.83 billion, while the over-weighted funding rate stands at 0.0051%. With rising open interest, bullish trading activity is also increasing.

However, data from the past 24 hours reflects a massive wipeout of bullish traders, with long liquidations rising to $4.23 million. Since short liquidations remain limited at $1.56 million, the imbalance has dropped the long-to-short ratio to 0.9708 over the past 24 hours.