Dogecoin Price Trends Up as Investors Focus on Breakout Level
Dogecoin (DOGE) increased by 0.4% today, trading at $0.070. Three factors have contributed to this recent price increase. First, the derivatives market for Dogecoin has recently shown more activity. Open interest for Dogecoin futures contracts has reached a 10 week high. Second, DOGE is forming a falling wedge. Third, the derivatives market for Dogecoin has been showing more participation from market makers.
However, even with a positive open interest, the sentiment from the futures market has not spread to the institutional market. DOGE ETFs have seen negative outflows. With more demand from the retail market and less interest from the institutional market, it is unclear where the price for Dogecoin will move next.
Dogecoin Open Interest Spikes to June Levels
Open interest for Dogecoin (DOGE) futures contracts increased to $1.17 billion on August 11, according to CoinGlass. This value was last seen on June 3, 2026. Rising open interest is a good indicator for the market. It suggests more bullish sentiment and expectation for a larger price move.
With a growing belief that the Federal Reserve will not raise interest rates for the next meeting on Sept. 20, Futures sentiment is building. According to the prediction markets, 57% of traders believe that the Fed will keep rates steady in the 3.50% – 3.75% range.
With uncertainty around the direction of the next interest rate move, positive sentiment in the Fed’s posture towards keeping rates steady is a bullish signal for the markets, especially risk assets like crypto.
Now, the funding rate is at 0.0095%, and it seems long-position traders are willing to pay more to keep their long positions. This implies most futures traders are taking a bullish outlook on DOGE and are potentially expecting price to recover.
DOGE Futures Data Suggests Strong Bullish Sentiment
Combined data from major exchanges are showing bullish sentiments by traders favoring DOGE’s potential upsides. Long/short ratios from CoinGlass stood at 2.72 (long) and 5.11 (long) on Binance and OKX respectively.
A long/short ratio above 1 shows a majority long position, and the futures traders are aligned in the expectation of an upside in the price of DOGE in the short term.
Long positioning in the futures market, however, tends to run the risk of mass liquidation should a price shock in a negative direction occur. As such, mass long positioning tends to be done in anticipation of a break of critical resistance limits.
Dogecoin Targets Falling Wedge Breakout As Bearish Pressure Weakens
Dogecoin has formed a falling wedge on the daily chart with price approaching the upper trend line of the falling wedge. Most of the time falling wedges are seen as bullish continuation patterns indicating a bullish breakout should price be able to break out above the upper trend line of the falling wedge.
Price action tends to be in a bullish direction with the RSI abandoning its downtrend and forming a series of higher lows indicating progressively less downward pressure. The DOGE price action has been in a strong sell-off and the returning buying pressure is a good sign for the price.
The Awesome Oscillator (AO) is also signaling a potential reversal in trend by the formation of bullish green bars.
If the price of Dogecoin closes above the $0.070 resistance level in three days, we should expect a gain of 10% towards the new resistance at $0.077.
If the bullish momentum stops before that resistance level is breached, we might see the price of Dogecoin drop back within the falling wedge, heading towards $0.068.
Outflows From Dogecoin ETFs Suggest Institutional Investors Have Lost Interest, Futures Traders Continue To Bet On Hope
Futures traders are hopeful about the prospects for Dogecoin, but institutional investors are still losing interest, as evidenced by the outflows from Dogecoin ETFs. SoSoValue data indicates Dogecoin ETFs have not experienced any inflows in the last four days, since August 5.
The outflows have been driven by a decline in institutional interest in cryptocurrency ETFs, as the broader market has seen inflows of approximately one billion dollars in the past week.
Previous analysis has indicated Dogecoin ETFs have had their worst monthly ETF inflows since their launch, further pointing towards weak institutional interest in Dogecoin.
Meme Coin ETFs Still Attract Asset Managers
While there has been a big decline in the ETF inflows, some asset managers believe that meme coins are a necessary part of a crypto ETF.
Blue Macellari, T. Rowe’s head of digital assets, believes that by excluding meme coins, investors could miss out on significant growth in the future.
This is the volatility and long-term investment concern about Dogecoin.
Dogecoin Price Prediction: Important Areas To Watch
Dogecoin is approaching a significant technical level as traders see if increasing open interest helps break above resistance.
Bullish scenario:
If that happens we’d be looking at a possible move to around the $0.077 level from the current price, representing a potential gain of 10%.
Bearish scenario:
In the event that buyers can’t sustain the breakout and DOGE falls back through resistance, that could put the price back in the region of $0.068.
With open interest rising along with an improvement in the technical picture, and ETF interest still lackluster, it’s going to be down to retail investors if they can muster enough momentum to offset decreasing institutional interest and drive the direction of Dogecoin next.
