Bitcoin Fell, But Dogecoin Jumped… Re-challenging $0.10

▲ Dogecoin (DOGE)/ChatGPT generated image ©

Dogecoin has embarked on an independent rebound, buoyed by derivatives fund inflows, even amidst Bitcoin's bearish market.

According to cryptocurrency market tracker CoinMarketCap on April 28 (local time), Dogecoin (DOGE) traded at $0.0995, up 1.54% over 24 hours. Unlike Bitcoin (BTC), which fell 1.29% during the same period, Dogecoin showed a separate trend, attracting market attention.

The key background for the rise is a surge in open interest in the derivatives market. On Binance, open interest jumped 39.8% over five days, increasing by approximately 920 million DOGE, or about $100 million, reaching a total open interest of $629 million. Additionally, the opening of new long positions worth $274,000 in the $0.10 range stimulated short-term speculative demand.

Expectations of regulatory clarity also supported investor sentiment. The market cited the classification of Dogecoin as a digital commodity by the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC, alongside Bitcoin and Ethereum, as a favorable factor. This is interpreted as a factor that reduces the burden on institutional demand in the long term.

Technically, defending the $0.0976 support level is key in the short term. Dogecoin is trading above its 7-day simple moving average of $0.0976, and its Relative Strength Index (RSI) remains in neutral territory at 58.52. If this range is maintained, the possibility of re-testing the recent high of $0.102 is open.

However, as the rally is leverage-based, the risk of a retracement is not small. If it falls below $0.0976, liquidation pressure could increase, leading to a decline to the 38.2% Fibonacci retracement level of $0.0937. The market views the stabilization at $0.10 as a key turning point for Dogecoin's short-term trajectory.

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