Why Did Dogecoin (DOGE) Rise Today…Can the Rebound Continue?

▲ Dogecoin (DOGE) ©

Dogecoin (DOGE) rose by over 1% despite stagnation in the overall market, but questions are being raised about the sustainability of this rebound due to decreased trading volume and a lack of clear positive news.

According to cryptocurrency market data aggregator CoinMarketCap on August 9 (local time), Dogecoin recorded a 1.60% increase over 24 hours, reaching $0.0708. This outperformed the market average, as the total cryptocurrency market cap rose by only 0.3%, and Bitcoin (BTC) increased by just 0.10%.

This surge is attributed to positive social media investor sentiment and technical expectations. Amid claims of a record net inflow into Dogecoin, the investor sentiment score reached 4.97, indicating a moderate bullish trend. However, trading volume decreased by 17.61%, suggesting that buying conviction is not strong. Analysts suggest that for the uptrend to be confirmed, trading volume needs to be sustained above $500 million.

The market also saw expectations for a breakthrough related to the 200-day simple moving average of $0.0926. However, the current price is below this moving average, meaning a strong trend reversal can only be confirmed once it recovers and settles above it. Immediately, if the $0.07 support level is maintained, there is a possibility of a gradual rise towards the 50% Fibonacci retracement level of $0.0740.

No major news specific to Dogecoin, changes in the derivatives market, or a broad upward trend across meme coins were identified. As this rebound appears to be an individual movement rather than a general market surge, it is evaluated that the price could quickly retrace if social media interest wanes.

The short-term outlook is presented as neutral to bullish. Maintaining $0.07 opens up the possibility of retesting $0.0926, but a breach of the recent low of $0.06797 or a daily close below $0.0675 would increase selling pressure, risking a move towards the 2026 year-to-date low. The future direction depends on whether the 200-day simple moving average is recovered and if trading volume increases, according to analysis.

*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.*