Dogecoin Eyes $0.30 as 71% of Binance Traders Hold Long Positions
Dogecoin is edging closer to the $0.20 resistance zone, with 71% of Binance traders betting on a bullish breakout.
- The meme coin’s rising momentum, supported by broader market trends, suggests a potential 85% rally toward $0.30.
Following Bitcoin’s temporary surge to $104,000, meme coins have gained significant ground.
- The meme coin sector has grown by 11%, pushing its combined market cap to $62.20 billion.
Amid this trend, Dogecoin has climbed nearly 10%, raising its market capitalization to $29.26 billion.
- With DOGE testing a key level, investors wonder if this signals the start of its next major upward move.
Dogecoin Approaches $0.20 Breakout Level
Dogecoin has staged a strong rebound from support around $0.14, building momentum to challenge the $0.20 resistance.
- Recent price action has formed an inverted head-and-shoulders pattern, which is typically considered a bullish reversal signal.
- The pattern’s neckline is closely aligned with the psychologically important $0.20 mark.
On May 8, DOGE rallied by 15%, producing a large bullish candle that breached two key indicators:
- The 50-day EMA at $0.1795
- The 23.60% Fibonacci retracement at $0.1869
Currently, Dogecoin is testing both the 100-day EMA and neckline resistance near $0.20.
- A confirmed breakout above this level could signal a new bullish phase for DOGE.
- The next key resistance lies at the 38.20% Fibonacci level of $0.2227.
If bullish momentum continues, the price could rally toward the 61.80% Fibonacci level at $0.2957, setting the stage for a retest of $0.30.
- On the downside, the 50-day EMA at $0.1795 serves as immediate support in case of pullback.
Binance Traders Bet on DOGE Upside
The sentiment across derivatives markets remains strongly bullish, as reflected in key trading metrics.
- Open interest in Dogecoin futures has jumped by 17%, now totaling $2.11 billion.
- The funding rate stands at 0.0102%, signaling aggressive long positioning from traders.
According to Coinglass, the long-to-short ratio has shown volatility in the past 12 hours.
- Long positions currently make up 52.02% of the total, with a ratio of 1.0842, favoring further upside.
On Binance, bullish conviction is even stronger, with 71.05% of traders holding long positions.
- This suggests that the market expects a breakout rally to unfold soon, possibly leading to extended gains.
Final Thoughts
Dogecoin appears well-positioned for a potential breakout, with strong technical indicators, bullish chart patterns, and derivatives market support all aligning in favor of upward movement.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Readers should conduct their own research before making any investment decisions.
