thecoinrepublic.com
Bitcoin approached the psychological $60K mark sparking an optimism in the broader crypto market again. With the renewed confidence, the investors are now looking for assets that may show significant gains in the short term.
With the recovering market sentiments, DOGS price was observed to be forming an interesting pattern over the daily chart, the breakout of which could trigger a straight 25 to 30% rally in the short term.
Despite the asset being in the correction phase, a significant rise in the open interest of DOGS could signal a pivotal market shift with bulls leading the charge. However, it requires the crypto to conquer the short-term hurdles. Here’s what could be next for DOGS price.
Derivatives Traders Lead The Charge
DOGS price has been on a steady fall since its inception at a price close to $0.0016 in August. The price has dropped over 33.7% from its record high. At the time of writing, DOGS was exchanging hands close to $0.0019 recording a mild intraday loss of 0.28%.
However, the last couple of sessions saw a turnaround in the price as the bulls seemed to be accumulating to defend the lows. This rebound in the price comes from the derivatives traders who accumulated nearly 25% of the open interest contracts in the last couple of sessions.
As per Santiment, the Open interest contracts have surged from $97 Million to $123 Million indicating an inflow of nearly $25 Million by the derivatives traders. The derivatives traders are aggressively betting on the long side with anticipation of a short-term rise in the DOGS price.
Moreover, the daily transaction volume has surged by 89.6% suggesting a heightened demand. with a live market capitalization of $569.3 Million, It ranks 102nd in the cryptoverse.
The volume-to-market cap ratio of 78.28% suggests very high volatility in the asset’s price.
Is DOGS Price Preparing For A Strong Rally?
The recent sessions saw a shift in market sentiments and inflow in the derivatives segment of DOGS crypto. The bulls which were lagging till now may try to dominate and lead the trend. However, it requires flipping the recent hurdles into the supports.
The daily chart showcases the formation of a rounding bottom pattern indicating a breakout validation above the neckline at $0.00113. A sustained move above this level could help the DOGS investors gain a straight 25 to 30% return on investment.
On the contrary, if DOGS crypto suffers rejection near the neckline, it may indicate a bearish trend continuation and the price may slump towards record lows. A breakout above the neckline is a must for a trend reversal on the positive side.
On a 4-hour chart, The RSI and 14-day SMA line presents a bullish crossover suggesting a potential continued recovery in the short term. The increased transaction volume and Open interest data also support the breakout scenario. However, short-term traders and investors need to keep a closer look at the price reaction at the neckline.