Dogecoin price is showing renewed buying interest after recovering key technical levels, the cryptocurrency has managed to regain market attention, amid consideration of whether the recent move higher can push further towards the level of $0.094 resistance.
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At press time, DOGE is trading around $0.0874, with an increase of 3.15% over the past 24 hours.
This development is significant since DOGE has been able to cross above its short- and medium-term exponential moving averages, coupled with elevated derivatives activity.
Also Read: Dogecoin Price Eyes $0.115 as Bull Flag Signals Potential Breakout
Dogecoin Price Recovery Centers on the $0.094 Area
The latest prices have taken Dogecoin price above its 20-day EMA ($0.08300), 50-day EMA ($0.07968), and 100-day EMA ($0.08189). Trading at levels above these EMAs strengthens the short-term uptrend in the coin’s price performance.
The next obstacle is the 200-day EMA at $0.09414. Moving above this area would provide stronger confirmation of the uptrend, while failure to do so may see the price revert to the other EMAs.
Relative Strength Index of 14 days stands at 59.72 with RSI average close to 62.12. In other words, it shows that momentum is still positive but has not yet reached the commonly used overbought level of 70.
It supports the recovery theory, but the fact that the RSI has shown a considerable reversal from the recently attained level above 80 makes us think that buyers will have to maintain momentum instead of depending on the current recovery.
What Role Does Dogecoin Open Interest Play in Driving Price Action?
Based on CoinGlass statistics, there was a notable spike in open interest for DOGE in the latter part of August, reaching about $1.5 billion but then falling back to the $1.3 billion range. This means that there is strong involvement of derivatives traders in DOGE.
It is noteworthy since higher open interest levels have the ability to increase breakout and reversal scenarios. The combination of a price recovery together with high open interest points to the possibility of increased volatility in the upcoming move.
Also Read: Dogecoin Price Could Rise Toward $0.10 if DOGE Clears Key Resistance
What Does Dogecoin Liquidation Data Show?
This chart from Coinglass provides some information on several major liquidations in connection with price changes of DOGE, such as the notable long liquidations in late August that are quite visible. New occurrences include some short liquidations as the price recovered.
In case short liquidations continue when DOGE holds a price higher than $0.083, it can support the recovery. Otherwise, the recovery could be weakened if the price drops below this level.
Will Dogecoin Price Be Able to Overcome $0.094?
The 200-day EMA at $0.09414 acts as the most obvious confirmation point in the above chart. Any successful breakout will shift focus toward other resistance zones while an inability to break above will leave DOGE vulnerable to another pullback.
The dogegod X account added to the bullish tone of discussion, saying, “Dogecoin senses $2.80. Rebound confirmed.”
Even though this comment is bullish, the technical information that accompanies this message does not support $2.80 as a target price.
Also Read: Dogecoin Eyes Breakout Toward $0.40 as Whale Buying Reaches $153M
