Despite a slight correction, rising trading volumes and the influx of "smart money" suggest a bullish trend for Dogecoin in the medium term. What factors are driving this momentum?
Dogecoin has recorded $2.94 billion in trading volume over the last 24 hours, representing an increase of 83.4% compared to the previous day. This surge in activity is also reflected in derivative products, with futures contract volume rising by 114.5% to $7.43 billion. Meanwhile, open interest has declined by 8.5% to $4.78 billion.
This pattern, often observed during periods of increased volatility, indicates rising short-term speculation, accompanied by some profit-taking or position closures.
According to CryptoQuant analyst Burak Kesmeci, retail investor enthusiasm for Dogecoin remains moderate. The futures activity index maintains a neutral zone, suggesting that institutional investors and smart money are currently supporting the recovery.
This dynamic reduces the risk of a sharp downward movement, often observed when retail speculation reaches high levels. On the contrary, the measured participation of retail investors suggests the possibility of continued accumulation before any significant correction.
Despite short-term selling signals, oscillators display an overall neutral position. Long-term moving averages remain bullish, supporting a positive trend on a broader scale.
Moreover, the arrival of the first Dogecoin ETFs in the United States, along with filings for other regulated products, opens new exposure channels for institutional investors. These developments could strengthen structural demand for Dogecoin in the medium term.
It’s interesting to note that Dogecoin is attracting attention from institutional investors and “smart money,” despite caution from retail investors.
DOGE has bounced off its 50-day moving average as well as a demand zone in HTF. The risk/reward ratio is therefore ideal for spot purchases or with 2x leverage.
The next short-term targets are at $0.26 and $0.28. This represents a potential increase of 18% in the coming days.
Here’s how to take advantage of this imminent rebound simply with the Zoomex CEX, ideal for beginners:
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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