Dogecoin (DOGE) is seeing a potential reversal in its current downtrend as on-chain metrics and sentiment turn bullish. Traders and investors are showing strong interest in long positions, with exchanges recording a significant outflow of over $3.75 million worth of DOGE. This outflow is seen as a bullish sign, indicating potential accumulation and buying pressure.
The DOGE Long/Short ratio is currently at 1.116, showing bullish market sentiment among traders. This ratio indicates that traders are favoring long positions over short ones, typically seen as a positive trend when the ratio moves above 1. Combined with the exchange outflows, it suggests that bulls are dominating the asset and supporting its shift from a bearish trend.
Technical analysis of DOGE shows that the cryptocurrency has broken out from a descending trendline that has acted as strong resistance since January 2025. If DOGE closes a daily candle above $0.165, it could rise by 24% to reach $0.207 in the coming days. Despite this breakout, DOGE remains below the 200-day Exponential Moving Average (EMA) on the daily timeframe, indicating a downtrend with bears still in control.
The Relative Strength Index (RSI) for DOGE is near 50, suggesting room for growth as it is neither overbought nor oversold. This could allow DOGE to gain further bullish momentum in the near future. At the time of writing, DOGE was trading near $0.1643, marking a 1.50% price surge in the past 24 hours with increased trading volume.
Overall, the sentiment for DOGE appears to be improving as on-chain metrics show bullish signs with strong interest from traders and investors. The recent breakout from a descending trendline and the potential for further upside suggest that DOGE may be in a position to reverse its current downtrend and move towards a more bullish outlook in the coming days.
