Dogecoin's recent decline of 10% following a multi-day rally raises questions about its future prospects. Current technical indicators are providing mixed signals, but some analysts suggest an upward potential.
Short-Term Signal Appears After Pullback
At press time, Dogecoin (DOGE) is trading at $0.26 with a 24-hour trading volume of $6.15 billion. The asset has seen a 10% drop in the last day but remains up 13% week-over-week. Analyst Ali Martinez reported that the TD Sequential indicator has generated a buy signal on the 4-hour chart around $0.263. According to Martinez, "Buy the dip on Dogecoin, says the TD Sequential indicator!"
Breakout Confirmed on Weekly Chart
On a broader timeframe, Trader Tardigrade noted that DOGE has broken out of a long-term symmetrical triangle formed over several months. This breakout includes a candle close above the upper trendline, indicating a potential move upward. The projected target is near $1.70 with a suggested entry around $0.27.
Short Pressure Builds at Local Lows
On lower timeframes, DOGE is experiencing increased short interest. Analyst Cryptoinsightuk noted that open interest rose to $9.02 billion while the funding premium turned negative at -0.0078. In these conditions, potential liquidation of short positions may lead to a sharp price increase, indicating that "a strong reversal may be seen soon."
Amid current volatility and rising short pressure, Dogecoin shows signs of possible upward trends. Traders remain cautious, awaiting further confirmations before making decisions.
