- Derivatives Traders Lead The Charge
- Pattern Setting the Price for a Rally
- Technical Analysis and Forecasts
Bitcoin approached the psychological $60K mark, sparking optimism in the broader crypto market. Investors are now looking towards assets that may show significant gains in the short term.
Derivatives Traders Lead The Charge
DOGS price has been on a steady fall since its inception at a price close to $0.0016 in August. The current price stands around $0.0019, marking a drop of over 33.7% from its record high. However, the last couple of sessions saw a turnaround as bulls seemed to be accumulating to defend the lows. According to Santiment, open interest contracts surged from $97 million to $123 million, indicating an inflow of nearly $25 million by derivatives traders. The daily transaction volume also surged by 89.6%, suggesting heightened demand. With a live market capitalization of $569.3 million, DOGS ranks 102nd in the crypto market. The volume-to-market cap ratio of 78.28% suggests very high volatility in the asset’s price.
Pattern Setting the Price for a Rally
Recent sessions showed a shift in market sentiments and an inflow into DOGS' derivatives market. Bulls, who were lagging until now, may try to dominate and lead the trend. However, it requires flipping recent hurdles into supports. The daily chart showcases a rounding bottom pattern indicating a breakout validation above the neckline at $0.00113. A sustained move above this level could help DOGS investors gain a straight 25-30% return on investment. On the contrary, if DOGS crypto suffers rejection near the neckline, it may indicate a bearish trend continuation and the price could slump towards record lows. A breakout above the neckline is a must for a positive trend reversal.
Technical Analysis and Forecasts
On a 4-hour chart, the RSI and 14-day SMA line shows a bullish crossover, suggesting potential continued recovery in the short term. Increased transaction volume and open interest data also support the breakout scenario. However, short-term traders and investors need to closely monitor the price reaction at the neckline.
The scenario with DOGS shows potential for significant growth if the price can break key levels. Nevertheless, investors should be cautious and closely watch the price movement to find the most advantageous entry and exit points.
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