DOGE has shown strong performance in the cryptocurrency market in the last seven days. Despite overall stability in top cryptocurrencies, DOGE surged by more than 25% during this period.

The recent increase in DOGE's price pushed it above the $0.2 mark, turning it into a new support level for potential buyers to participate in the bullish trend.

Upon analyzing DOGE's price movements in daily and four-hour timeframes, a positive bullish trend was evident. The Relative Strength Index (RSI) indicated near-overbought conditions on the daily chart and remained above the neutral 50 on the four-hour chart.

Buyers, both short-term and long-term, showed strong buying interest in DOGE. Capital inflows were significant on higher timeframes, with a reading of +0.08. However, on lower timeframes, it slightly dropped below zero.

Following a double retest on the four-hour chart, bulls successfully maintained the buying support at $0.2. This suggests buyers could enter long positions with a target of $0.25 for a 21% return in the short term and $0.3 for a 41% return in the long term.

Positive Funding Rate in Futures Market

The futures market indicated a highly positive funding rate, signaling optimistic sentiment among traders. Additionally, the long/short ratio heavily favored buyers, with 71.5% holding long positions compared to 27.5% short positions across various timeframes.

While the trade setup appears low risk, traders should remain cautious. A strong bearish candle breaking below the $0.2 support level could invalidate the bullish scenario.

Trade idea: Entry: $0.21 (CMP)

Target: $0.25; $0.3

Stoploss: $0.18

Disclaimer: This article presents the writer's opinion and does not serve as trading, investment, financial, or any other form of advice. Conduct thorough research before making any trading or investment decisions.