Dogecoin's Upward Momentum Strengthens... Attempting to Break $0.12

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Dogecoin (DOGE) is once again building upward momentum, using the $0.11 support level as a springboard. With retail investor funds flowing into the futures market, attention is focused on the possibility of breaking through $0.12.

According to investment media FXStreet on May 14 (local time), Dogecoin is continuing its upward trend above $0.1100, mirroring the broader cryptocurrency market rebound. The outlet analyzed that the simultaneous improvement in momentum indicators and increased retail investor demand are raising the likelihood of a short-term breakout.

CoinGlass data shows that Dogecoin perpetual futures open interest (OI) has increased to $1.71 billion. This is a significant increase from the $1.6 billion level a day earlier. OI has been steadily increasing since its yearly low of $894 million recorded in March. The outlet assessed that Dogecoin's price movement shows a strong correlation with the growth of the derivatives market, and retail investor-driven demand remains a key driver of upward momentum.

However, some analyses caution against excessive optimism. The OI-Weighted Funding Rate has re-entered negative territory at -0.0060%. This indicates that the cost of maintaining short positions is increasing, and if a major resistance level fails to break, there is a higher possibility of a short-term sharp decline due to increased liquidation.

Technically, the upward structure is assessed to be maintained. Dogecoin is currently trading near $0.1145 and remains above the 50-day and 100-day Exponential Moving Averages (EMA). These two EMAs are clustered in the $0.1030-$0.1060 range, acting as support levels. The Parabolic SAR is also positioned below the price at $0.1056, supporting the continuation of the uptrend. The Relative Strength Index (RSI) has risen to around 66 on the daily chart, approaching the overbought zone, but analysis suggests there is still room for further upside.

The outlet presented the 200-day EMA at $0.1231 as a key resistance level for the future. If this level is breached, a further upward trend could accelerate, but conversely, if the $0.1030-$0.1060 support zone breaks down, there is a possibility of increased short-term volatility. However, so far, the structure of 'buy-the-dip' during corrections has been maintained, indicating that the overall bullish trend remains intact.

*Disclaimer: This article is for informational purposes only and does not constitute investment advice. We are not responsible for any investment losses incurred based on this information. The content should be interpreted solely for informational purposes.*