TLDR:
- Dogecoin has surged 7.3% in the past 24 hours, trading at $0.174
- Key resistance levels at $0.18 and $0.21 identified as critical breakout points
- RSI shows a bullish crossover, indicating buyers have regained market control
- Trading volume increased by 22% to $1.22 billion, with options volume up 84.21%
- Long positions now dominate at 71.47%, showing market confidence despite recent downtrends
Dogecoin has shown renewed strength in recent trading, with buyers returning to the market after a period of decline. The popular memecoin has experienced a 7.3% increase over the past 24 hours, indicating a potential shift in market sentiment that could set the stage for further gains if key resistance levels are overcome.
The price rebound comes after DOGE hit a two-week low of $0.160, prompting investors to buy the dip. This buying activity has pushed the price to $0.174 at the time of writing, creating positive momentum in both spot and derivatives markets.
Despite this recent uptick, Dogecoin remains down 5.45% on a weekly basis and 15.5% monthly, raising questions about whether this recovery represents a temporary bounce or the beginning of a more sustained uptrend.
Key Resistance Levels Ahead
According to analyst Ali Martinez, two critical resistance levels could determine Dogecoin’s next major move. Based on UTXO Realized Price Distribution (URPD) data from Glassnode, Martinez identified $0.18 and $0.21 as key supply walls that DOGE must overcome.
#Dogecoin $DOGE is facing two key resistance walls at $0.18 and $0.21. Breaking through both could be the catalyst for the next major bull rally. pic.twitter.com/NIln4NilM6
— Ali (@ali_charts) April 1, 2025
The URPD metric tracks the amount of supply last transacted at various price levels throughout Dogecoin’s history. This helps identify where large concentrations of coins might create buying or selling pressure.
At the $0.18 level, approximately 8% of DOGE’s total supply was last transacted, while the $0.21 level accounts for around 7%. These concentrations of coins represent potential resistance as investors who bought at these prices may sell to break even when the price returns to their cost basis.
“Breaking through both could be the catalyst for the next major bull rally,” Martinez noted, pointing out that there are no equally large supply walls beyond these levels if DOGE can successfully push through.
Technical Indicators Turn Bullish
Several technical indicators now support the case for continued upward momentum. A bullish crossover has formed on Dogecoin’s Relative Strength Index (RSI), signaling that buyers have regained control of the market.
When the RSI rises and makes such a crossover, it typically indicates that buying pressure has overtaken selling pressure, creating conditions for price appreciation. This technical signal aligns with on-chain data showing a positive order imbalance, with more buy orders than sell orders in the market.
Additionally, the Stochastic RSI appears to be moving upward. If it completes this movement and makes a bullish flip, it would further validate the RSI’s bullish crossover, strengthening the case for a continued uptrend.
Derivatives Markets Show Growing Interest
Derivatives markets for Dogecoin have shown substantial growth alongside the price increase. Options volume surged by an impressive 84.21%, while Options Open Interest (OI) increased by 8% to reach $804,000.
Meanwhile, DOGE’s trading volume jumped 22% to $1.22 billion, and futures Open Interest climbed 7.23% to $1.67 billion. These metrics indicate growing trader engagement and market liquidity, essential factors for sustaining price moves.
Perhaps most tellingly, Dogecoin’s Long/Short Ratio reveals that buyers are re-entering the market specifically to take long positions. Long positions now account for 71.47% of futures contracts, compared to just 28% for shorts.
This dominant long positioning suggests that traders are increasingly bullish on DOGE’s prospects, anticipating price increases in the near term rather than further declines.
Understanding Supply Dynamics
The URPD analysis also reveals that the largest supply wall for Dogecoin sits around the $0.07 level, where over 20% of all coins in circulation were last transacted. Given that the current price is well above this level, these coins are sitting on substantial profit.
This dynamic creates an interesting market psychology. When cryptocurrency prices retest levels where large amounts of supply previously changed hands, investor behavior tends to follow predictable patterns based on whether those holders are in profit or loss.
For coins acquired at levels below the current price (like the $0.07 supply wall), a retest from above often triggers buying as investors see it as a “dip” opportunity if market sentiment is generally positive.
Conversely, for levels above the current price (like $0.18 and $0.21), a retest from below often triggers selling as investors who previously bought at those prices seek to exit at breakeven after having been underwater on their investment.
Near-Term Price Targets
If Dogecoin maintains its current momentum, reclaiming the $0.18 level will be the first major challenge. Success there would strengthen the case for a push toward $0.19 and potentially set the stage for testing the $0.21 resistance level.
However, should buyer enthusiasm wane, DOGE could experience a correction that might push prices down to the $0.168 level as an initial support.
The next few days will be crucial in determining whether Dogecoin can build on its recent gains and potentially trigger the next leg up in what has historically been one of the most volatile cryptocurrencies in the market.
Market Sentiment Shifting
The sudden increase in buying pressure suggests a shift in market sentiment toward Dogecoin. After weeks of decline, investors appear to be viewing current prices as favorable entry points, recognizing potential value at these levels.
This positive sentiment is further reflected in derivatives markets, where traders are increasingly betting on DOGE’s recovery rather than continued decline.
With bullish indicators emerging across both technical and on-chain metrics, Dogecoin stands at an interesting juncture. The cryptocurrency’s ability to overcome the identified resistance levels will likely determine whether this bounce develops into a more substantial bullish trend or remains a temporary relief rally in an otherwise bearish market.
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