- DOGE is currently accumulating bullish momentum after retesting a key demand zone at $0.115.
- The memecoin’s rising Weighted Funding Rate suggested growing market interest.
Dogecoin [DOGE] is showing early signs of a potential trend reversal after weeks of choppy and bearish price action.
The leading memecoin recently revisited a key demand zone that had previously fueled its breakout from a flag consolidation pattern before the last major bull run.
The bullish pressure from the order block saw DOGE surging massively by about 34% before the bearish run. Since its retest on the weekly chart, DOGE prices have been steadily gaining bullish momentum.
With this bounce from this critical zone, holder confidence is not only restored confidence, but it has also attracted new momentum-driven interest.
Source: TradingView
This sharp recovery is a strong technical signal, often interpreted as a validation of bullish demand.
DOGE market is leaning bullish
Backing the price rally is the memecoin’s Weighted Funding Rate, which has been mirroring an intriguing trend. Over the last three days, the Funding Rate has shown a consistent increase.
This means that more market participants are willing to pay a premium to keep their long positions open in an anticipation for further price gains.
The rise in DOGE’s Funding Rate always reflects positive sentiment in the Futures market, and also a shift in bias — from cautious optimism to more confident accumulation.
In most cases, rising Funding Rates, paired with price gains, indicate that bulls are gaining ground and short-sellers are retreating from the market volatility.
Source: Coinglass
What’s next for the memecoin?
Despite the strong start, it is crucial for DOGE investors to monitor whether bulls can maintain control. A dip in volume or a cooling of the Funding Rate could hint at fading bulls’ interest.
Conversely, if Dogecoin continues to hold above its demand zone while climbing steadily, the reversal case gains more weights.
In all, DOGE appears to be at a critical turning point. The next few days will be key in determining whether this is a sustainable trend shift or just another short-lived rally.