Dogecoin (DOGE) gained momentum above $0.1100 on Thursday, keeping pace with crypto majors. The meme coin signals strong recovery potential, as momentum indicators align with rising retail demand.
Retail interest stagnates as Dogecoin rises
Dogecoin has demonstrated strong retail participation, as evidenced by the continued expansion in futures open interest (OI). OI rose to $1.71 billion on Thursday, a significant increase from $1.60 billion a day earlier, data from Coinglass shows.
While OI briefly retreated from its May high of $1.77 billion to a local low of $1.46 billion, the metric remains at a persistently high level since hitting its annual low of $894 million in March.
Dogecoin price action is closely tied to growth in the derivatives market, underscoring how retail-driven demand remains a key catalyst for upside momentum.
However, investors should remain cautiously optimistic, given that the OI-weighted funding rate has retreated into negative territory at -0.0060%. This suggests that market participants are incurring higher costs to maintain their short positions.
Should Dogecoin struggle to overcome key resistance levels, liquidations could lead to a sharp decline.
Price Analysis: Dogecoin Poised to Extend Recovery
Dogecoin trades at $0.1145, maintaining a near-term bullish trend as the price remains above the 50-day and 100-day exponential moving averages (EMA), which are clustered around $0.1030 and $0.1060.
The Parabolic SAR at $0.1056 sits below spot and reinforces underlying trend support, while the Relative Strength Index (RSI) near 66 on the daily chart indicates strong but approaching overbought momentum. This outlook suggests that upside pressure remains, but more meaningful supply may soon be encountered towards the 200-day EMA at $0.1231.
At the top, the 200-day EMA around $0.1231 is the next major resistance that bulls will need to reclaim in order to push higher. On the downside, initial support is seen near the current pivot around $0.1145, ahead of the dense demand band formed by the 100-day EMA $0.1060, Parabolic SAR $0.1056 and 50-day EMA $0.1030. A break below these demand zones would be expected to attract dip-buying interest, while the broader bullish structure would remain intact.
(The technical analysis for this story was written with the help of AI tools.)
