Key Highlights
- Dogecoin hovers around $0.070 with technical indicators showing bullish momentum divergence as downside pressure weakens
- Major holders have purchased 180 million DOGE tokens during the recent price decline
- Trader sentiment turns bullish with long-to-short ratio climbing to 1.27, marking a 30-day peak
- Funding rates flipped to positive territory on July 24 and continue trending upward
- Critical resistance level positioned at the 50-day EMA ($0.074), with support anchored at $0.067
Dogecoin (DOGE) is currently changing hands near the $0.070 mark as of Tuesday, maintaining a position slightly above an important psychological threshold. Despite trading beneath significant moving averages, multiple blockchain metrics and derivatives indicators suggest a potential turnaround may be developing.
Large-scale holders have been consistently acquiring DOGE throughout the latest price pullback. Data from Santiment’s Supply Distribution analysis reveals that addresses containing between 10 million and 100 million DOGE have added approximately 180 million tokens to their holdings since Saturday. Conversely, smaller addresses holding 100,000 to 1 million tokens have offloaded roughly 10 million tokens during this period.
This accumulation pattern from significant market participants indicates sustained confidence in DOGE’s value proposition at these price levels.
Cryptocurrency analyst Ash Crypto highlighted on social platforms that DOGE has reached historically extreme oversold conditions, having declined 90% from its peak value and touching a 3-year bottom at $0.067. He emphasized that the monthly RSI indicator shows deeper oversold readings than observed during the 2022 market trough, prompting speculation about whether DOGE might be establishing a price floor.
$DOGE is now at its most oversold levels ever.
ā Down 90% from its ATH.
ā It has hit a 3-year low at $0.067.
ā Monthly RSI is now more oversold than during the 2022 market bottom.Could this be a bottom signal for DOGE? pic.twitter.com/6L3ejbRvU7
ā Ash Crypto (@AshCrypto) August 4, 2026
Futures Market Signals Shift Bullish
Derivatives market indicators are displaying an increasingly optimistic stance. According to CoinGlass analytics, DOGE’s long-to-short ratio surged to 1.27 on Tuesday, representing the strongest reading in more than 30 days. When this ratio exceeds 1.0, it indicates that more market participants are positioned for upward price movement rather than downward.
DOGE funding rates transitioned into positive territory on July 24 and have risen to 0.0096% as of Tuesday. Positive funding rates indicate that traders holding long positions are compensating those holding short positions, demonstrating bullish sentiment prevailing in the marketplace.
Additionally, blockchain analytics reveal that whale addresses accumulated 680 million DOGE valued at approximately $48 million in anticipation of a potential Federal Reserve interest rate reduction. Such a policy shift could provide tailwinds for speculative digital assets like DOGE.
Chart Analysis and Price Levels
DOGE continues to trade beneath the 50-day EMA positioned at $0.074 and the 100-day EMA at $0.081, maintaining a near-term bearish structure. Nevertheless, the daily RSI is displaying a bullish divergence pattern ā while price established a lower low on August 1, the RSI formed a higher low, indicating that selling momentum may be exhausting.
The Awesome Oscillator similarly exhibits ascending lows even as price remains compressed near recent lows, providing additional confirmation of the divergence pattern.
Important resistance barriers are located at $0.074, $0.076, and $0.081. For support, $0.070 represents the immediate floor, with the annual low at $0.067 serving as the next significant level below.
Market participants are closely monitoring the $0.0710 level ā a daily close above this threshold could trigger additional upward momentum, whereas a breakdown below $0.070 might invite intensified selling activity.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
