Dogecoin is trading around $0.070 after shedding 3.5% last week, but beneath the surface, traders are increasingly betting on a bounce. The long-to-short ratio climbed to a one-month high of 1.25, and funding rates stayed positive at 0.0074% — both signs that demand for long positions remains stronger than for shorts.
Bullish Divergence Appears on the Daily Chart
Despite the price drop, a classic bullish divergence has formed. On August 1, DOGE printed a lower price low while the Relative Strength Index (RSI) recorded a higher low. The Awesome Oscillator is also showing rising lows while the price itself sits near recent lows. These patterns suggest that downside momentum is weakening and a reversal could be brewing.
Key Support and Resistance Levels
Immediate support sits at $0.070. If that level breaks, the next floor is the yearly low at $0.067, followed by $0.065. A decisive daily close below $0.067 would open the door to further losses toward $0.065.
On the upside, DOGE faces a thick layer of resistance. The first hurdle is the 50-day exponential moving average (EMA) at $0.075, then a descending trendline near $0.080. Above that, the 100-day EMA at $0.083, a horizontal resistance at $0.088, the 200-day EMA at $0.100, and finally $0.102. The memecoin currently trades below all three major EMAs — the 50-day, 100-day, and 200-day — which typically signals a bearish trend in the medium term.
What Could Break the Stalemate
The conflicting signals — bearish price structure versus bullish momentum indicators — leave DOGE in a tight range. A sustained move above $0.075 would be the first real sign of strength, while a drop below $0.067 would confirm the bears are still in control. For now, the market is watching whether the bullish divergence plays out or fizzles.
The next major test: can DOGE hold above $0.067? A close below that level would likely accelerate selling toward $0.065.
