Dogecoin: Key level to reverse DOGE trend

* DOGE has fallen 4.24% in the past seven days.

• After a period of absence, buyers of Dogecoin are returning.

Since reaching 0.43 USD three months ago, Dogecoin [DOGE] has struggled to maintain its upward momentum and is currently trading within a falling channel.

The price of Dogecoin continues to fall, raising concerns in the DOGE community.

Currently, DOGE is trading at 0.1726 USD, falling 4.24% over the past seven days. However, this memecoin has shown signs of short-term recovery, rising from 0.16 USD to 0.17466 USD on the daily chart.

Source: Coinalyze

Meanwhile, the trading volume of options has increased by 34%, and the trading volume has risen by 23.29%, indicating an increase in market activity.

However, DOGE still fell 0.87% in the past 24 hours, mainly due to inactive buyers, keeping pressure on the market.

However, this trend seems to be reversing, with the return of buyers.

Analyzing the Buy-Sell Volume, over the past day buyers have purchased 748.7 million DOGE, while sellers have sold 730 million Tokens.

This leads to a 14 million order imbalance, indicating that buying pressure is outpacing selling activity. The positive order imbalance suggests that buyers are dominating the market.

Source: CryptoQuant

In addition, the CVD of Futures Taker and Spot Taker CVD accumulation is dominated by buyers. With buyer dominance in both the spot and futures markets, the accumulation trend is spreading among market participants.

In the futures market, these buyers are participating in the market and opening long positions. Currently, long positions account for 69.7% while short positions account for 30.3%.

When long positions dominate, it indicates that most investors are optimistic and expect prices to recover in the short term.

Source: Coinalyze

What is the next trend for DOGE?

With the return of buyers, Dogecoin may be on the verge of a trend reversal.

TinTucBitcoin's analysis indicates a shift in market sentiment from negative to positive, as investors take advantage of the fall to accumulate DOGE ahead of a potential price increase.

If this accumulation trend continues, Dogecoin could reclaim the 0.187 USD mark and break through the convergence area.

However, if the upward momentum weakens, DOGE could fall to 0.165 USD, highlighting the importance of buying strength in determining its next move.

Source: Coinglass

At that time, the accumulation trend from buyers will increase the buying pressure on the price of Dogecoin.

The Stock-to-Flow ratio of memecoin has risen to 79, reaching a weekly high. This indicates that there are fewer DOGE tokens available for sale, as buyers are holding their assets in cold wallets or private wallets.

Typically, increasing scarcity can drive prices higher, especially if demand remains steady or continues to rise.

Source: Santiment

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