Dogecoin Drops 4.97% Amid Resistance But Long-Term Buying Signals Bullish Trend

Dogecoin [DOGE] experienced a price decline of 4.97%, moving towards the lower end of its price range. This recent drop contrasts with its overall performance over the past month, which saw a gain of 20.57%. The decline occurred as DOGE encountered a critical resistance level, which has historically triggered retracements on five prior occasions. Only once did the price manage to hold above this level.

Despite the recent price drop, there are several factors suggesting that DOGE's market trajectory could still be bullish. Analysis of spot market trader activity revealed an increase in buying since the last time DOGE traded into the demand zone. As of the latest data, traders have acquired $16.91 million worth of DOGE, as indicated by the Exchange Netflow. This Netflow not only confirms the purchase but also suggests that these spot traders are buying for the long term, as they have moved their assets from exchanges to private wallets.

Additionally, DOGE’s Open Interest Weighted Funding Rate has continued to rise, now up 0.0047%. This metric, trading in the positive region, confirms that running contracts in the market are still mostly dominated by long traders. With growing interest from both spot and futures traders, DOGE could regain its earlier upward trajectory.

Further supporting a potential upward move is DOGE’s Liquidation Heatmap, which shows an active cluster above the current price. The yellow zone reflects nearly $1.4 million in potential liquidations. Historically, prices are drawn toward high liquidation levels such as this. If this pattern holds, it could act as a major catalyst for an upward price trend, with the memecoin recording further gains.