Dogecoin News Today: Dogecoin's Bullish Trend Pauses Amid Negative Net Flows

Dogecoin's price has recently shown signs of cooling off after reaching a high of $0.2785, but several indicators suggest that this could be a temporary pause rather than a reversal of the overall bullish trend. One of the key indicators of investor confidence is the net flow of Dogecoin into and out of exchanges. Over the past week, there have been consistent negative net flows, meaning more Dogecoin is being withdrawn from exchanges than deposited. This accumulation trend typically reduces selling pressure and sets the stage for price growth.

Historically, similar net outflows have preceded sharp rallies in Dogecoin's price. The current negative flows suggest that the bullish sentiment remains strong. Additionally, the Open Interest (OI)-Weighted Funding Rate hit 0.0239% on July 21, indicating excessive bullish leverage in the derivatives market. High funding rates can signal a risky situation where over-leveraged traders might be forced to sell, leading to a sudden price drop. This overheating could result in a temporary correction, but the long-term setup remains robust.

Technical indicators also support the bullish outlook. On the daily chart, the 20-day Exponential Moving Average (EMA) has crossed above the 200-day EMA, a classic bullish crossover. The 50-day EMA is on the verge of crossing the 100-day EMA, another signal of growing momentum. These crossovers suggest that buyers are taking control, and the crossover around July 15 coincided with Dogecoin's price surge from around $0.20.

Currently, Dogecoin's price is just above the $0.27198 resistance, which has now turned into a support zone. The price reached as high as $0.2785 before slightly cooling down. Technical charts indicate a possible pause before Dogecoin resumes its upward move. The next major resistance lies near $0.3518, but the real target is much higher, at the 2.618 extension level of $0.48103. If Dogecoin manages to resume this rally, the move from its current level around $0.275 to the $0.481 target would represent a nearly 74.5% potential gain.

While Dogecoin may take a short breather, possibly down to $0.243 as part of the correction, the broader structure still points to more upside. Another reason to expect a breather or correction is the formation of a “Cup-and-Handle” pattern. The retracement could mean hitting the $0.22 support level, which aligns with the strongest Fibonacci level of 0.618 and should be able to keep the prices from correcting further. However, if Dogecoin's price crosses the $0.3 mark, the rally could continue without many breaks, invalidating the short-term correction or bearish angle.