Recent examination indicates that DOGS, a meme coin on Telegram, might be poised for a significant surge in value despite differing market sentiments.
DOGS made waves after its addition to the Coinbase futures market on September 19, following previous listings on Binance’s spot and futures markets.
This development places DOGS in a crucial position, potentially propelling its recent uptrend or leaving it vulnerable to further downward pressure.
Recent price movement and crucial levels to monitor
DOGS was trading at $0.0009937 at the time of writing, with a 24-hour trading volume of $376,474,563, marking a 1.23% increase in the last day but a 2.49% decline over the past week.
The coin’s market capitalization was at $513,223,017 with a circulating supply of 520 billion DOGS.
Price action has seen DOGS making attempts to break out from the dips near the $0.00095 region, a vital support area that has been tested multiple times.
Technical indicators suggest a potential 13% rally from current levels, aiming for the $0.00106 mark within the hour.
Key support is identified around $0.00009160, a point where buyers traditionally intervene to sustain bullish momentum.
Resistance levels are observed between $0.00010200 and $0.00010600, with the subsequent higher resistance zone lying between $0.00011200 and $0.00011400.
A breakout beyond these thresholds could trigger further upward momentum, positioning DOGS for a significant movement.
The Significance of breakouts near $0.00095
The $0.00095 level was crucial for DOGS as it signified a potential starting point for upward price shifts. Holding above this level indicates strong buyer interest and reduces the chances of a deeper corrective phase.
However, a breach below this range could expose DOGS to additional downside risks.
Traders are closely monitoring the resistance at $0.00106, which, if surpassed, could validate the bullish scenario and attract more market participants.
Derivatives data from Coinglass showed a 15.55% drop in trading volume to $63.11M, signaling reduced market activity.
Nevertheless, Open Interest has surged by 5.31% to $146.20M, indicating increased trader participation.
Long/Short ratios on major exchanges like Binance and OKX heavily favor long positions, reflecting optimism within the trading community.
DOGS Breakout Approaches Amid Growing Adoption
The bullish outlook for DOGS hinges on the breakout from recent declines and the push towards the $0.00106 target.
Encouraging on-chain metrics further support this perspective, with data from IntoTheBlock indicating an uptrend in new user adoption over the past week.
While the 30-day average adoption rate stands at 43.63%, recent fluctuations suggest that the coin is gaining traction, though slightly below peak adoption levels.
Risks to this bullish stance include a potential failed breakout or low trading volume hampering the sustainability of upward momentum.
Despite mixed market sentiment, the rise in Open Interest and strong positioning in long positions imply that traders are preparing for potential profit opportunities.