Key takeaways
Dogecoin (DOGE) trades near $0.0770 on Thursday, extending its recovery after two consecutive sessions of gains.
Dogecoin ETFs have recorded no new inflows since October 14, reflecting subdued institutional demand.
DOGE has reclaimed its four-hour 50-period EMA at $0.0762 and is approaching descending trendline resistance at $0.0786.
Dogecoin (DOGE) is showing early signs of a bullish recovery, trading around $0.0770 on Thursday after extending its gains for a second consecutive session.
The meme coin has maintained its position above the $0.0770 level, building on a rebound of more than 2% during the previous session.
However, the recovery has yet to attract meaningful participation from institutional investors and leveraged traders.
CoinGlass data shows that Dogecoin futures Open Interest has declined since Monday, while exchange-traded funds (ETFs) tracking the meme coin have recorded no fresh inflows since October 14.
Despite the weak demand indicators, DOGE’s four-hour technical structure is improving. The cryptocurrency has reclaimed a key short-term moving average and is approaching a descending resistance trendline near $0.0786.
A successful breakout could strengthen bullish momentum and put the $0.0806 resistance level within reach.
Dogecoin futures OI declines despite price recovery
Dogecoin’s recent price gains have not been accompanied by an increase in futures market participation.
According to CoinGlass, DOGE futures Open Interest fell to $1;06 billion on Thursday from $1.18 billion on Monday.
This divergence suggests that the rebound has not yet generated sufficient confidence to attract fresh leveraged positioning.
It may also indicate that some traders are closing positions rather than committing additional capital during the recovery.
However, falling Open Interest does not automatically signal bearish sentiment. If short sellers are closing positions, declining Open Interest can coincide with upward price movement.
Institutional demand for Dogecoin also remains subdued. According to SoSoValue data, Dogecoin-focused ETFs have recorded zero new inflows since October 14.
The absence of fresh inflows has extended into a third consecutive week, highlighting limited buying interest through these investment products.
For Dogecoin, the lack of ETF inflows contrasts with its improving short-term price performance.
Dogecoin’s rebound comes as the broader cryptocurrency market attempts to recover following the recent period of heightened volatility.
Market sentiment has shown signs of improvement after the US midterm elections, in which Democrats secured control of both congressional chambers.
The political developments have contributed to changing expectations about the direction of US economic and digital asset policy.
However, the direct implications for cryptocurrency regulation remain uncertain. For speculative assets such as Dogecoin, broader market confidence can be particularly important.
Dogecoin reclaims key moving average on four-hour chart
Dogecoin’s technical outlook has improved after the cryptocurrency moved back above its 50-period Exponential Moving Average (EMA) on the four-hour chart.
DOGE trades near $0.0772, holding above the 50-period EMA at approximately $0.0762.
The EMA gives greater weight to recent prices and is commonly used to assess short-term market direction.
However, Dogecoin has not yet cleared its most important near-term resistance. A descending trendline connecting the October 8 and October 29 highs currently sits near $0.0786.
This trendline has acted as an overhead barrier during the recent decline. A confirmed breakout above it would indicate that buyers are challenging the sequence of lower highs that has constrained DOGE’s recovery.
Momentum indicators on Dogecoin’s four-hour chart support the possibility of further gains.
The Relative Strength Index (RSI) stands near 58, indicating that buying pressure has strengthened. At 58, Dogecoin’s RSI reflects improving demand without indicating an extreme overbought market.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains marginally positive.
Together, the RSI and MACD readings indicate that Dogecoin’s recovery has technical support. Nevertheless, these signals remain relatively modest and do not guarantee a sustained breakout.
Dogecoin’s immediate upside target is the descending resistance trendline near $0.0786.
A sustained four-hour close above this barrier could strengthen bullish momentum and open the way toward $0.0806.
The $0.0806 level is particularly important because it aligns with the 200-period EMA and horizontal resistance on the four-hour chart.
Failure to overcome the trendline could trigger renewed selling pressure and encourage traders to take profits following the recent rebound.
On the downside, immediate support stands at the 50-period EMA near $0.0762. A sustained break below this level would weaken the short-term bullish outlook and suggest that buyers are losing momentum.
The next significant support is located around $0.0723, a horizontal price level that could attract renewed demand.
If selling pressure intensifies and DOGE falls below $0.0723, the next downside target would be approximately $0.0677.
