The price of Dogecoin rose for two days in a row this week as Bitcoin and most altcoins stabilized.
Conclusion
- Dogecoin price has formed a double pattern on the daily chart.
- Demand for DOGE ETFs decreased this month.
- Futures open volume and interest increased.
The Dogecoin token (DOGE) traded at $0.09 today, March 10, slightly higher than this month’s low of $0.087. This reversal occurs even as demand for the three-point DOGE ETF declines completely.
The data shows that GDOG Grayscale, TDOG 21Shares and BWOW Bitwise collected more than $7.45 million in revenue. Their net worth reached $8.97 million, which is a small amount for one of the biggest coins in the crypto industry.
More importantly, these funds only added $779,000 this month. They have not received any logins in the last 5 days. In contrast, Solana’s spot ETFs have drawn in $955 million since inception and $21 million this month.
On the positive side, data shows that volume is improving in the spot and futures markets. Figures from CoinGlass show that volume reached more than $2.6 billion on Tuesday, the third day in a row. It topped $1.4 billion on Sunday.
Dogecoin futures open interest has also stabilized below the $1.2 billion mark. Also, the weighted funding ratio has turned green, indicating that traders in the futures market expect it to recover.
Dogecoin price technical analysis
The daily chart shows that the price of DOGE has reached the bottom. It formed a double bottom pattern at $0.0877, its lowest level in February and March. Its neck level was $0.1170, the highest rate of which was on February 15 of this year.
The double bottom pattern shows that the bears are afraid to place a trade below this price. The price target is set by calculating the double height from the neckline. In this case, the high is $0.030. One then adds this figure to the neck, giving it a target of $0.1470.
Other indicators point to recovery. For example, the Relative Strength Index jumped to the neutral point of 50, while the MACD indicator is approaching the zero line.
Therefore, the indicator is likely to bounce back and the first target is the neck at $0.1170. A move above this level points to a further increase to the double target at $0.1470, which is about 50% above the current level.
