TLDR
- DOGE has broken a 4-hour descending trendline, indicating a possible move away from bearish dominance.
- A bullish MACD crossover confirms strengthening momentum following a long-term decline.
- The $0.10 demand zone remains a structural anchor, capping potential losses.
- Leading traders on Binance are raising their long positions, matching early signs of a rebound.
The price of Dogecoin (DOGE) is displaying initial indications of a structural turnaround after piercing a stubborn descending trendline on shorter timeframes. Chart analysis reveals growing momentum around the $0.10 demand area, while derivatives metrics suggest increasing confidence among traders. Collectively, these factors depict a market striving to shift from extended weakness to stability, with eyes now on higher resistance levels.
Dogecoin Price Breaks 4H Downtrend With Momentum Shift
Analyst Trader Tardigrade notes that Dogecoin’s price has confirmed a clear breakout above a descending trendline on its 4-hour chart. This trendline had previously restrained price action by creating a series of lower highs, cementing bearish authority. The price’s subsequent move to retest the former resistance level as new support exemplifies typical break-and-retest dynamics.
SOURCE: X
Momentum analysis via the MACD indicator bolsters this technical picture. A bullish crossover after a lengthy bearish period implies that downward momentum has dissipated. Furthermore, shifting histogram bars point to building upward pressure instead of a fleeting bounce.
The retest phase is now the critical area for confirmation. Provided DOGE maintains its position above the recaptured trendline, the market structure supports a move toward higher resistance areas. A failure to hold this level would raise the risk of renewed consolidation and undermine the reversal thesis.
Demand Zone Near $0.10 Anchors Dogecoin Price Structure
In a separate analysis, expert Lucky examined the wider market structure and demand patterns. The chart underscores the significance of the psychological $0.10 level, where the price previously found a floor after a sustained drop. The positive reaction from this zone implies selling exhaustion as longer-term buyers entered the market.
Additionally, a breakout occurring near a demand zone carries greater technical significance. Such trendline breaks often hint at a change in market behavior, beyond mere short-term trading. Here, the price action demonstrates a shift from establishing lower lows to stabilization, preceding an effort to move higher.
Furthermore, the chart’s projected upside targets correspond with previous resistance levels, highlighting their technical importance. As long as DOGE stays above the trendline support and the demand zone holds, the structure leans toward recovery instead of a resumption of the larger downtrend. This outlook suggests a controlled advance rather than expecting an aggressive rally.
Top Traders Increase Long Exposure as Dogecoin Price Stabilizes
Adding to the analysis, expert CW offered a view into derivatives market positioning using Binance’s top traders’ long/short ratios. The data reveals a marked rise in long exposure, implying seasoned traders are building positions in anticipation of potential gains. These positioning changes frequently come before increased market volatility when they coincide with technical breakouts.
Significantly, metrics based on both the number of accounts and the size of positions show a growing preference for long bets. This uniformity makes it less probable that the positioning is the result of a few large trades, instead pointing to widespread conviction among major traders—a pattern that has historically coincided with the start of new price trends.
Nevertheless, high long exposure also brings risk if the price advance stalls. A drop below the recently claimed support level could prompt swift liquidations and fresh volatility. For the moment, the positioning data corroborates the technical perspective that Dogecoin’s price is seeking stability, not gearing up for another significant decline.
