Dogecoin (DOGE) has recently shown signs of a potential trend reversal after retesting a key demand zone at $0.115. This memecoin has experienced choppy and bearish price action in recent weeks, but a bounce from the critical zone has restored holder confidence and attracted new momentum-driven interest. The rise in price is seen as a validation of bullish demand, with DOGE market leaning bullish.
One of the factors supporting the price rally is the memecoin’s Weighted Funding Rate, which has been increasing over the last three days. This indicates that more market participants are willing to pay a premium to keep their long positions open in anticipation of further price gains. Rising Funding Rates, coupled with price gains, suggest that bulls are gaining advantage and short-sellers are stepping back from market volatility.
Looking ahead, it is important for DOGE investors to observe whether bulls can maintain control. A decrease in volume or a cooling of the Funding Rate could signal diminishing interest from bulls. On the other hand, if Dogecoin continues to hold above its demand zone while steadily climbing, the case for a reversal gains strength. The next few days will be critical in determining if this trend shift is sustainable or just a short-lived rally.
In conclusion, Dogecoin is currently accumulating bullish momentum after retesting a key demand zone. The memecoin’s rising Weighted Funding Rate suggests growing market interest, while the bounce from the critical zone has restored holder confidence and attracted new momentum-driven interest. The increase in Funding Rate reflects positive sentiment in the Futures market, indicating a shift in bias towards confident accumulation. The next few days will be crucial in determining whether DOGE’s current trend reversal is sustainable or temporary.
