- DOGE has surged by 7.3% over the past 24 hours.
- Dogecoin buyers are returning to the market as a bullish crossover emerges.
Over the past day, Dogecoin [DOGE] buyers have made a strong comeback. After declining to a two-week low of $0.160, investors have returned to buy the dip. This buying spree has played a vital role in driving DOGE prices higher.
In fact, as of this writing, Dogecoin was trading at $0.174. This marked a 7.30% increase in the 24-hour timeframe.
Source: Coinglass
During the same period, Dogecoin’s derivatives experienced significant growth. Options volume increased by 84.21%, while Options Open Interest (OI) rose by 8% to $804k.
Additionally, the memecoin’s rading volume surged by 22%, reaching $1.22 billion, and OI climbed 7.23% to $1.67 billion.
Before these gains, Dogecoin had been on a downward trend, declining by 5.45% weekly and 15.5% monthly. The question remains whether Dogecoin can maintain this momentum and reach higher resistance levels.
Can Dogecoin maintain its recent gains?
AMBCrypto’s analysis indicates a surge in demand for Dogecoin as buyers re-enter the market.
The memecoin’s price charts reveal a bullish crossover on its Relative Strength Index (RSI). This crossover supports the observation that buyers have regained control of the market.
When the RSI rises and makes a bullish crossover, it signals that buyers are dominating the market, surpassing sellers in strength.
Source: Tradingview
The dominance of buyers is confirmed by the positive order imbalance, indicating more buy orders than sell orders.
This market behavior showcases strong bullish sentiment, as investors see current rates as favorable for acquiring the asset. Historically, increased demand has often led to higher prices, suggesting potential upward movement in the market.
Source: MobChart
Finally, Dogecoin’s Long/Short Ratio indicates that these buyers are re-entering the market to take long positions. As such, the number of longs has spiked to 71.47% over the past day, with shorts accounting for only 28% of the futures contracts.
When longs are dominant, it suggests that investors are bullish and anticipate prices to rise in the near term.
Source: Coinalyze
In summary, Dogecoin is experiencing strong short-term demand, signaling a shift in market sentiment. With buyers dominating, DOGE is well-positioned for potential price increases if this momentum persists.
The upward momentum appears to be building steadily. If the Stoch RSI completes its upward move and makes a bullish flip, it will validate the RSI’s bullish crossover.
This confirmation would indicate a continuation of the uptrend, suggesting that Dogecoin can sustain its recent gains.
If this happens, DOGE is likely to reclaim the $0.18 level, which would strengthen its position for a push toward $0.19.
However, if buyers’ bullish efforts falter and sellers begin to offload, a correction could bring DOGE’s price down to $0.168.