DOGE important signal: 73% of traders bet bullish, is the withdrawal from the exchange brewing a new round of bull run?

DOGE (狗狗幣) has broken through the downtrend line that lasted for several months, currently reporting at 0.2310 USD during the Asian early session today (18th). This move may indicate a reversal of the long-term trend. 73% of traders are betting bullish, with funds continuously flowing out of the exchange, suggesting that the market is brewing a new bull run.

This breakthrough is not a coincidence: it occurred after a series of lower highs and is confirmed by the weekly closing price above a key resistance level. The price level that has acted as a solid barrier since December 2023 is now showing signs of turning into new support.

However, to truly solidify the bullish trend, DOGE needs to hold above $0.19 and create higher lows. If the price continues to break through $0.22, the bullish structure will be clearly established, thereby completely erasing the previous bearish pattern.

Is the next bull run for DOGE coming soon?

As of the writing of this article, the funding rate for DOGE has significantly turned positive at 0.0163%, indicating that the bulls are in control and willing to pay higher costs to maintain their positions—this signal typically reflects strong confidence among futures traders in the past upward trend.

However, if the financing interest rates continue to rise too quickly, the market may enter an overheated area, bringing the risk of a short-term pullback.

Currently, the financing rates are providing support for the rise in gold prices, especially in conjunction with the ongoing buying pressure from the spot market.

(Source: Coinglass)

At the same time, the open interest (OI) trading volume also surged by 14.03%, reaching $3.12 billion, indicating that a large amount of capital is flowing into the derivatives market. This clearly shows that traders are actively opening new positions, anticipating that DOGE will soon make a significant breakout.

It is worth noting that the increase in open contracts is in line with the improvement in market sentiment, reflecting people's willingness to take on risk in pursuit of higher prices in the future.

However, the risks of high-leverage positions cannot be ignored - if the trend suddenly reverses and investors do not react in time, it may lead to severe price fluctuations.

Overall, as long as the open contracts continue to expand with the price, the current trend remains favorable for the bulls.

DOGE keeps being withdrawn from the exchange

On-chain data shows that the net outflow from the exchange is still ongoing, reaching 3.7 million USD as of the time of writing this article. This trend not only reflects a decrease in selling pressure but also indicates that long-term investors' confidence in DOGE's potential is increasingly strengthening.

Withdrawing from the exchange is often interpreted as a strategy for accumulation—investors choose to store their assets in personal wallets instead of engaging in short-term trading. This is typical behavior during a period when the market begins to accumulate again.

(Source: Coinglass)

If this trend continues, DOGE may enter a state of supply scarcity on the exchange, creating favorable conditions for price recovery, especially when new funds from individual or institutional investors begin to flow back into the market.

Is DEX bullishness overly confident?

In the DEX DOGE/USDT trading market, bulls are in control, with 73.78% of traders being bullish. The long-short ratio has risen to 2.81, reflecting a clear bias towards long positions.

This development further strengthens the bullish sentiment brought about by DOGE's recent breakout. However, if the market suddenly reverses, this one-sided trend could also bring risks.

In fact, when bullish positions dominate, the market can easily fall into a state of complacency—this is the ideal condition for sudden and significant volatility.

Therefore, to avoid a large-scale liquidation situation, DOGE needs to maintain its short-term momentum to protect market sentiment and sustain the bullish trend.

DOGE has entered the positive zone, but further confirmation is still needed

DOGE has just broken through a key resistance zone, with strong confirmation from derivatives and on-chain data.

The increase in open contracts, the shift of financing rates to positive values, and the continued net outflow from the exchange have clearly strengthened the bullish outlook for DOGE.

However, the unusually high bullish ratio also poses the risk of a pullback when the rebound encounters resistance. Overall, DOGE is facing the opportunity to continue its upward trend, but to confirm a sustained reversal, the price needs to stabilize above $0.19 and break through $0.22 as soon as possible.