Dogecoin Gains 3.5% to $0.205 Amid Bearish Derivatives Market
Dogecoin (DOGE) Analysis
- DOGE rebounded 3.5% to $0.205 on August 6.
- Daily trading volume dropped over 20% to $4.14 billion, indicating weak short-term speculation.
- Open interest increased by 1.66% to $3.05 billion, with more short contracts than long positions across all major timeframes.
- $4.73 million in DOGE positions were liquidated recently, with $2.01 million from longs, showing bearish pressure.
- Short liquidations dominated, with $1.34 million against $65,000 on the 4-hour chart.
- Top trader accounts show lack of bullish conviction despite a neutral long/short ratio of 0.99.
The market indicates cautious optimism, but bearish sentiment prevails in derivatives. A potential short squeeze could push DOGE towards $0.25 if buying momentum increases.
DOGE Price Levels
- DOGE needs to close above $0.23 to confirm a bullish reversal.
- Resistance at $0.28 remains significant; support is near $0.18.
- A daily close above $0.228 may trigger movement towards $0.25.
- A rejection at $0.22 could lead to a drop back to $0.18.
Market Diversification
- As DOGE consolidates, traders are exploring alternatives like Solaxy (SOLX), a Layer-2 solution on Solana.