Dogecoin ($DOGE) has made a significant breakthrough, emerging from a long-term downtrend, which has become a notable event for the crypto community.
Breakout from Descending Resistance
Analyst Sheldon The Sniper noted that Dogecoin has officially breached its descending resistance line on the weekly chart. This line had been in place since December 2023, when consistently lower highs and sustained bearish momentum were observed. The latest weekly green candle pierced this trendline, signaling a potential shift in direction.
Price Rebounds with Building Bullish Structure
Currently, DOGE is trading around $0.206, up 3.79% on the day. This price action reflects a short-term bullish trend, with higher lows forming and the price remaining within the upper range of Bollinger Bands. Momentum indicators support this upward movement: MACD has tilted slightly positive and RSI stands at 67.49, indicating increased buying pressure without entering overbought territory.
Surge in Open Interest for Dogecoin Futures
Recent data from Coinglass shows that Dogecoin's futures open interest has risen significantly, approaching levels not seen since early 2024. The increase in open interest is tracking alongside price recovery, suggesting growing speculation among derivatives traders. Similar spikes in open interest previously occurred during periods of major price movement, including in May 2021 and December 2023.
With DOGE trading above $0.20 and total open interest nearing $2 billion, market watchers are preparing for possible high-volatility moves, reflecting a shift in sentiment and increased trader engagement in the meme coin space.
