Dogecoin held $0.070 on Tuesday after dropping 3.5% the previous week. The coin sits below all major moving averages, yet something shifted beneath the surface. Derivatives traders suddenly turned optimistic, and momentum indicators flashed a signal that selling might finally be running out of steam.
The long-to-short ratio jumped to 1.25, its highest in over a month. That means more traders are betting on a price bounce than a further decline. Funding rates turned positive at 0.0074%, which sounds tiny until you realize what it means: traders holding long positions are actually paying those shorting. In crypto derivatives, that's how you know bulls have the upper hand.
Divergence breaks the bearish spell
Dogecoin formed a lower price low on August 1 while its daily RSI printed a higher low. Classic bullish divergence. The Awesome Oscillator reinforced it, with recent lows rising even as DOGE kept sliding. Translation: downside momentum is weakening even though the price isn't recovering yet. This gap between price action and momentum often precedes reversals.
The technical picture remains messy. The 50-day EMA sits at $0.075, the 100-day at $0.083, and the 200-day at $0.100. All three will act as resistance if buyers try to push higher. Immediate support holds at $0.070, the level DOGE is currently defending. Lose that and the next floor is notably lower.
What matters now is whether the derivatives optimism holds. If long-to-short ratios stay elevated and funding stays positive, it suggests accumulation is happening. That's the foundation a real recovery would need. But sentiment can flip fast in crypto. For now, Dogecoin is at a crossroads, with early technical signals hinting upward while the overall trend remains firmly down.
This material is for information only and should not be treated as financial advice. Cryptocurrency markets are volatile and speculative. Do your own research before trading or investing.
