Dogecoin defends $0.07... Will it succeed in a trend reversal this time?

▲ Dogecoin (DOGE) ©

Dogecoin (DOGE) has rebounded from its key support level of $0.07, nearing $0.075, as buying interest among individual investors appears to be reviving. However, institutional funds are still recording net outflows, making the future breakthrough of resistance a key variable in determining the short-term trend.

According to investment media outlet FXStreet on July 3 (local time), Dogecoin continued its rebound, rising about 3% the previous day and reaching close to $0.075. As market risk aversion sentiment eased slightly, Dogecoin futures open interest and funding rates both increased, indicating a recovery in individual investors' buying sentiment. Technically, signals emerged of exiting the oversold zone, raising the possibility of breaking through the resistance trendline near $007766.

Institutional demand has not yet shown a clear recovery. According to SoSoValue's aggregation, Dogecoin spot ETFs recorded a net outflow of $871,110 on the 3rd. This is the third net outflow since the product's launch, breaking a streak of nine consecutive trading days without net outflows prior to this. The outlet interpreted this as a sign that institutional investor sentiment remains cautious in the short term.

Conversely, individual investor participation is increasing. According to CoinGlass data, Dogecoin futures open interest increased by over 7% in the last 24 hours, reaching $1.04 billion. Trading volume also remained around $1.02 billion, and the funding rate rose to 0.0099%, indicating that investors are expanding their long positions even while bearing premiums.

Technically, a Morning Star pattern formed after a rebound from the $0.0700 support level. The current price is trading below the 50-day Exponential Moving Average (EMA) of $0.0863 and the 200-day EMA of $0.1093. However, if the $0.0776 resistance trendline is broken on a closing basis, further upside to the 50-day EMA is possible, according to analysis. The Relative Strength Index (RSI) showed recovery from the oversold zone at 32, and the Moving Average Convergence Divergence (MACD) also slightly crossed above its signal line, suggesting weakening downward momentum. Conversely, the outlet predicted that if the $0.0700 support level breaks, further correction could extend to the $0.0642 horizontal support level.

*Disclaimer: This article is for investment reference only and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*