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Dogecoin [$DOGE] rose after holding the $0.07 support level. The memecoin reached a two-week high of $0.073 before retracing slightly.
At press time, $DOGE traded near $0.0721, up 2.93% on the daily chart. It also moved above its 9-day and 21-day moving averages.
Trading Volume rose 72% above $500 million. Market capitalization increased 13% to $12.3 billion, reflecting stronger capital inflows.
What drove Dogecoin’s price rally?
$DOGE’s recent move appeared driven by leveraged demand and a short squeeze.
As the market rebounded, short positions below $0.07 faced liquidations. CoinGlass data showed that more than $1.5 million in short positions were liquidated.
Those liquidations forced short sellers to buy back $DOGE. That added demand and strengthened the memecoin’s upside move.
In fact, capital also returned to Dogecoin’s Futures market. Futures Inflows reached $381 million, compared with $372 million in outflows.
Consequently, Futures Netflow rose 172% to $9.36 million. The metric had not closed positively in recent months.
On top of that, Derivatives Volume increased 114% to $1.22 billion. Open Interest also rose 5.3% to $1.23 billion.
The higher Open Interest and Derivatives Volume suggested traders opened fresh positions. The Long/Short Ratio reached 1.01 and exceeded 2 on Binance and OKX. That positioning showed traders had shifted toward longs. The next test depended on whether spot buyers followed.
Can $DOGE hold its bullish momentum?
Dogecoin’s Relative Strength Index (RSI) supported the improving momentum. The RSI rose to 53 and moved into bullish territory.
This indicated buyers had gained control over sellers. If that demand holds, $DOGE could break the $0.075 resistance and target $0.08.
However, Spot Netflow reached a monthly high of $5.23 million on Aug. 11. It then cooled at press time. That suggested some holders took profits into the rally. If speculation fades and spot selling grows, $DOGE could revisit $0.070.
Final Summary
- Dogecoin [$DOGE] rose 2.93% and reached a two-week high of $0.073 after reclaiming the $0.07 support level.
- $DOGE could target $0.08 if it breaks the $0.075 resistance level.