Dogecoin News Today: Dogecoin Breaks Multi-Month Trendline With 14.03% Open Interest Surge

Dogecoin's recent breakout above its multi-month descending trendline signals a potential long-term trend reversal. This breakout, confirmed by a weekly close above the resistance level, indicates a shift in market sentiment. The level, which has acted as a ceiling since December 2023, now appears to be turning into support. For the breakout to gain credibility, Dogecoin must maintain its position above $0.19 and establish a new higher low. A continuation above the $0.22 zone would further solidify the bullish reversal and invalidate the previous bearish structure.

Funding Rates for Dogecoin have flipped notably positive, with the OI-Weighted Funding Rate reaching 0.0163% as of press time. This uptick suggests that long traders are now dominant and willing to pay a premium to hold positions. Historically, such a rise has indicated strong bullish conviction among perpetual traders. However, if rates continue to climb rapidly, it could signal overheating and an eventual correction. For now, the positive funding supports upward momentum, especially if coupled with sustained buying pressure in the spot market.

Additionally, Open Interest has risen sharply, up 14.03% to $3.12 billion, marking a strong influx of capital into the Futures market. This spike indicates that traders are increasingly opening new positions in response to Dogecoin’s breakout. Moreover, the rise in Open Interest aligns with growing market confidence and a willingness to bet on higher prices. However, such aggressive positioning can lead to volatile swings, especially if the market turns against overleveraged participants. Still, the current trend favors bulls as long as Open Interest continues rising alongside price action.

On-chain data reveals continued spot outflows, with a $3.70 million net outflow recorded at the time of writing. This trend reflects reduced selling pressure and possibly growing confidence among long-term holders. Typically, outflows signal that investors prefer to self-custody their assets rather than keep them on exchanges, a behavior associated with accumulation phases. Therefore, as long as these outflows persist, Dogecoin could experience a supply squeeze that supports upward price movement, especially if new demand emerges from retail or institutional buyers.

Long positions continue to dominate the DOGEUSDT market on Binance, with 73.78% of traders currently betting on an upside. The Long/Short Ratio has surged to 2.81, indicating heavy bullish bias. While this reinforces the optimism surrounding Dogecoin’s breakout, it also raises concerns of potential liquidations if the market reverses. Typically, extreme long dominance suggests complacency, which can become a catalyst for volatility. Therefore, Dogecoin must deliver sustained gains to avoid a rapid unwinding of these overleveraged long positions.

Conclusively, Dogecoin has flipped a critical resistance level and is seeing strong confirmation from derivatives and on-chain metrics. Rising Open Interest, positive Funding Rates, and ongoing spot outflows all point to a bullish environment. However, elevated long positioning introduces risk if price momentum stalls. Overall, Dogecoin appears primed for further gains, but it must hold above $0.19 and push past $0.22 to confirm a lasting trend reversal.