Dogecoin Shows Bullish Momentum With 15.09% Open Interest Surge

Dogecoin has recently shown signs of bullish momentum, rebounding from the $0.14 support level and forming a cup-and-handle pattern. This technical formation suggests a potential breakout, with the price currently hovering around $0.182 within a parallel channel. If Dogecoin manages to break above the $0.198 resistance level, it could pave the way for a further surge towards the $0.25 mark in the coming weeks. However, any rejection near the mid-channel zone may lead to consolidation.

The symmetry of the cup-and-handle pattern and the previous response to support levels indicate that bulls are still in control. Confirmation of this bullish trend depends on Dogecoin holding above the $0.16 level going forward. The pattern's formation and the current price action suggest a potential for a stronger rally, but this will require sustained momentum and follow-through volume.

Over the past 90 days, Dogecoin's cumulative volume delta on spot markets has consistently favored taker buys, indicating aggressive buying activity. This dominance reflects confidence among buyers, even during corrective phases, and has historically aligned with short-term upward breakouts, especially when combined with bullish technical patterns. The sustained pressure from spot buyers supports a bullish outlook, but a weakening in this volume profile could expose Dogecoin to downside risks if key resistance levels are not cleared.

Spot Netflow data reveals that over $8.5 million in Dogecoin was pulled from exchanges on July 10th alone, extending a broader trend of sustained outflows. This behavior often precedes accumulation phases, as participants move funds off exchanges to reduce sell-side pressure and potentially tighten supply. While this does not guarantee price increases, it reduces the availability of Dogecoin for immediate sale, which could support price recovery efforts. However, if these outflows reverse unexpectedly, it may signal profit-taking, which could pressure price recovery efforts.

Derivatives data also suggests growing confidence among traders. Open Interest surged sharply by 15.09% to $2.44 billion, reflecting a renewed influx of capital into Dogecoin futures. At the same time, Funding Rates remained positive at +0.0093%, indicating that long positions are paying short traders, an early sign of bullish conviction. This combination of increasing exposure and sustained optimism highlights growing confidence from derivatives traders. However, excessive leverage without spot market support could lead to forced liquidations. For now, the data supports continuation, but traders should monitor for shifts in funding or aggressive Open Interest spikes.

In summary, Dogecoin's recent price action and technical patterns suggest a potential for a bullish continuation. The cup-and-handle formation, strong buyer dominance, and sustained outflows from exchanges all point to a potential breakout towards the $0.25 level. However, traders should closely monitor key resistance levels and derivatives data for any signs of a reversal or consolidation. Sustained momentum will depend on follow-through volume and broader market stability in the coming sessions.