The recent analysis by AMBCrypto revealed that despite Dogecoin’s struggle to reach $0.30, traders remain bullish on the coin. Despite a recent drop in price to $0.17, traders are unfazed by the market correction, as indicated by the Long/Short ratio of 1.02. This ratio suggests a bullish sentiment among futures traders, with more long positions being taken.
However, sentiment alone may not be enough to break Dogecoin out of its current price range. AMBCrypto also examined the Open Interest (OI) indicator, which monitors liquidity and interest in specific contracts. With Dogecoin’s OI standing at $1.29 billion, it indicates that net positioning by traders has remained stable despite market volatility. If the OI holds and the market stabilizes, Dogecoin could resume its uptrend and potentially surpass $0.20 and then $0.25.
From a technical perspective, the Dogecoin/USD chart shows signs of weakness in momentum, with the Relative Strength Index (RSI) falling below midpoint and the Parabolic SAR’s markers indicating a bearish signal. If market conditions stabilize, Dogecoin could potentially break out of its consolidation phase. However, the altcoin is expected to remain within its current price range in the coming days, unless there is a surge in bullish sentiment or a catalyst like a tweet from Elon Musk.