Dogecoin (DOGE) shows clear signs for a rally, based on technical and on-chain metrics, indicating potential bullish continuation.
Technical Indicators of DOGE on the Daily Chart
Currently trading above $0.21, DOGE is forming a textbook double bottom pattern on the daily chart, a historically reliable reversal formation. This bullish structure is developing after DOGE decisively broke out of a long-standing descending channel, confirming a shift in momentum. An immediate break above $0.21 could pave the way to $0.25, completing the double bottom pattern, leading to $0.48, the level last seen in December 2024.
Futures Analysis and Demand for DOGE
From an on-chain data perspective, DOGE's metrics reflect this bullish setup. Open Interest (OI) in DOGE futures markets has seen a massive jump in July, rising from $1.70 billion to $2.85 billion, indicating renewed speculative activity. Despite the rise in OI, funding rates remain neutral, signaling that leveraged longs have not overheated the market.
Psychological Metrics and Their Importance for Investors
The Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) has now entered the Optimism-Anxiety zone. This psychological zone indicates that long-term DOGE holders are sitting on moderate profits and shifting sentiment from uncertainty to cautious confidence. Every major DOGE breakout historically began once LTH-NUPL moved into this zone, allowing short to mid-term capital inflows to drive price action.
DOGE shows signs of readiness for growth, confirmed by both technical analyses and market reactions. Future developments in the crypto market will depend on the sustainability of interest and trading volumes.
