Dogecoin finds support at $0.17 as bearish momentum fades, while on-chain and derivatives data hint at a potential bullish reversal toward $0.20.
As top cryptocurrencies hold key support levels, meme coins have been on a downward trajectory. The segment’s market cap has dropped 20% over the past 30 days, now at $54.63 billion.
Meanwhile, Dogecoin appears to be forming a base at $0.17. With lower price rejections and rising optimism in the derivatives market, could Dogecoin be gearing up for a bullish comeback?
Dogecoin Price Analysis
On the daily chart, Dogecoin’s price action shows a base forming near the $0.17 support zone. Notably, Dogecoin has previously rebounded from this level in April, May, and June.
Following a recent bounce from a weekly low of $0.1639 to $0.1711, Dogecoin shows signs of an extended recovery.
The MACD and signal lines are nearing a bullish crossover, while the daily RSI has risen after reversing from the oversold zone. This suggests a short-term uptick in bullish sentiment, supporting the potential for a price rebound.
According to Fibonacci retracement levels, a daily close above the 23.60% mark could push Dogecoin toward the psychological resistance at $0.20. Conversely, a close below the current support zone could open the door to a decline toward $0.15.
Analyst Spots Bullish Crossover Ahead of Potential Dogecoin Reversal
Supporting the bullish outlook, crypto analyst Trader Tardigrade highlighted the potential for a major price turnaround. According to the analyst, a bullish crossover between the 10-week and 20-week simple moving averages (SMAs) is approaching.
Historically, this crossover has led to Dogecoin price surges ranging from 200% to 300%. As Dogecoin nears this technical signal once again, the odds of a significant uptrend increase.
Dogecoin Derivatives
In the derivatives market, optimism around Dogecoin has notably improved as the asset establishes a strong support base. Historical price action suggests a reversal may be imminent, and recent data shows increased buying activity over the past 24 hours.
Coinglass data reveals that open interest has risen 1.83%, reaching $1.82 billion. Additionally, the funding rate has spiked to 0.0055%.
Despite the long/short ratio remaining neutral, long liquidations have nearly doubled those of shorts: $910K vs. $407K. This indicates that traders are leaning toward a bullish outlook.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
