Dogecoin Defends $0.07…Will It Succeed in Reversing the Trend This Time?

▲ Dogecoin (DOGE) ©

Dogecoin (DOGE) rebounded, approaching $0.075, using the key support level of $0.07 as a foothold, with signs of individual investors' buying interest reviving. However, institutional funds are still recording net outflows, making the future breakthrough of resistance a key variable in determining the short-term trend.

According to investment media FXStreet on July 3 (local time), Dogecoin continued its rebound, rising by approximately 3% the previous day and reaching near $0.075. With market risk aversion sentiments somewhat easing, Dogecoin futures open interest and funding rates rose together, indicating a recovery in individual investors' buying sentiment. Technically, signals of exiting the oversold zone appeared, raising the possibility of breaking through the resistance trendline near $0.07766.

Institutional demand has not yet clearly revived. According to SoSoValue's aggregation, Dogecoin spot ETFs recorded a net outflow of $871,110 on the 3rd. This is the third net outflow since the product's launch, breaking a streak of no net outflows for the previous nine consecutive trading days. The media interpreted this as a sign that institutional investor sentiment remains cautious in the short term.

Conversely, individual investor participation is increasing. According to CoinGlass data, Dogecoin futures open interest increased by over 7% in the last 24 hours, reaching $1.04 billion. Trading volume also remained around $1.02 billion, and the funding rate rose to 0.0099%, indicating that investors are expanding long positions despite bearing a premium.

Technically, a Morning Star pattern formed with a rebound from the $0.0700 support level. Although the current price is trading below the 50-day Exponential Moving Average (EMA) of $0.0863 and the 200-day EMA of $0.1093, it is analyzed that a further rise to the 50-day EMA would be possible if the $0.0776 resistance trendline is broken on a closing basis. The Relative Strength Index (RSI) showed a recovery from the oversold zone at 32, and the Moving Average Convergence Divergence (MACD) also slightly broke above its signal line, indicating weakening downward momentum. Conversely, the media predicted that if the $0.0700 support level breaks, a further correction could lead to the $0.0642 horizontal support level.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*