Dogecoin is trading around $0.070 after slipping 3.5% last week, but a cluster of technical and derivatives indicators suggests the pullback may be losing steam. The token's long-to-short ratio climbed to a one-month high of 1.25, and funding rates have stayed positive since July 24, pointing to growing demand for long positions.
Derivatives data turns bullish
The long-to-short ratio, which measures the number of long positions against shorts, hit 1.25 — its highest level in a month. That signals traders are increasingly positioning for a price rise. Funding rates, the periodic payments between long and short traders, remain positive at 0.0074%, meaning longs are paying shorts to maintain their positions. Positive funding typically reflects stronger conviction among buyers.
These readings come as DOGE sits just above its immediate support at $0.070. If that level fails, the next floor is $0.067, the yearly low, followed by $0.065. On the upside, the first hurdle is the 50-day exponential moving average at $0.075, then a descending trendline breakout near $0.080.
Price action shows a possible divergence
On August 1, DOGE formed a lower price low while the daily Relative Strength Index (RSI) recorded a higher low. That bullish divergence often suggests selling momentum is fading. The Awesome Oscillator, a momentum indicator, has also seen its recent lows rise even as price hovers near lows — another sign that downside pressure is weakening.
The moving averages tell a broader story. The 50-day, 100-day, and 200-day exponential moving averages sit at $0.075, $0.083, and $0.100, respectively. All are above the current price, meaning the longer-term trend remains bearish. But a break above the 50-day EMA could open the door to $0.080, then $0.083, and eventually the horizontal resistance at $0.088.
Key levels to watch
For now, the immediate battleground is $0.070. A daily close below that would put the yearly low at $0.067 in play. On the flip side, reclaiming $0.075 would be the first sign of a trend shift, with $0.080 as the next confirmation. Above that, the 100-day EMA at $0.083 and the $0.088 horizontal level become targets.
The $0.100 and $0.102 levels — the 200-day EMA and a major horizontal barrier — remain distant goals. Traders are watching whether the bullish divergence plays out in the coming sessions, with the funding rate and long-to-short ratio offering early clues. The next move likely hinges on whether DOGE can hold $0.070 and push through the 50-day EMA.
