Key Highlights
- DOGE hovers around $0.070 with technical indicators showing momentum divergence that could signal weakening bearish pressure
- Major holders accumulated 180 million DOGE tokens during the price decline
- The long-to-short ratio climbed to 1.27, marking its highest level in more than 30 days, indicating growing bullish sentiment
- Funding rates shifted to positive territory on July 24 and continue climbing
- Critical resistance zone lies at the 50-day EMA ($0.074), with support anchored at $0.067
Dogecoin (DOGE) is currently changing hands near $0.070 on Tuesday, maintaining its position slightly above an important psychological threshold. Despite trading beneath significant moving averages, multiple on-chain metrics and derivatives indicators suggest a potential price reversal may be developing.
Major token holders have been consistently acquiring DOGE throughout the recent price decline. Data from Santiment’s Supply Distribution reveals that addresses containing between 10 million and 100 million DOGE have added approximately 180 million tokens to their holdings since Saturday. Conversely, smaller addresses holding 100,000 to 1 million tokens offloaded roughly 10 million tokens during the same period.
This dip-buying pattern among substantial holders indicates sustained confidence in DOGE’s value proposition at these price levels.
Cryptocurrency analyst Ash Crypto highlighted on social media that DOGE has reached unprecedented oversold territory, declining 90% from its peak and touching a 3-year floor at $0.067. He emphasized that the monthly RSI now displays more extreme oversold conditions than observed during the 2022 bear market trough, prompting speculation about whether this represents a cyclical bottom for DOGE.
$DOGE is now at its most oversold levels ever.
ā Down 90% from its ATH.
ā It has hit a 3-year low at $0.067.
ā Monthly RSI is now more oversold than during the 2022 market bottom.Could this be a bottom signal for DOGE? pic.twitter.com/6L3ejbRvU7
ā Ash Crypto (@AshCrypto) August 4, 2026
Futures Market Signals Optimism
Derivatives market indicators are displaying increasingly bullish characteristics. According to CoinGlass tracking, the long-to-short ratio for DOGE hit 1.27 on Tuesday, representing its strongest reading in over 30 days. When this ratio exceeds 1.0, it demonstrates that more market participants are positioned for upward price movement rather than declines.
Funding rates for DOGE turned positive on July 24 and have advanced to 0.0096% as of Tuesday. When funding rates are positive, long position holders compensate short position holders, which indicates prevailing bullish sentiment in the derivatives market.
Additionally, blockchain data reveals that large holders acquired 680 million DOGE valued at approximately $48 million in anticipation of a potential Federal Reserve interest rate reduction. Such monetary policy shifts typically provide tailwinds for risk-on assets including DOGE.
Chart Analysis
DOGE continues trading beneath the 50-day EMA positioned at $0.074 and the 100-day EMA at $0.081, maintaining a near-term bearish structure. Nevertheless, the daily RSI is displaying bullish divergence ā while price established a lower low on August 1, the RSI formed a higher low, indicating diminishing bearish momentum.
The Awesome Oscillator is similarly printing higher lows while price consolidates near recent bottoms, adding confirmation to the divergence pattern.
Important resistance zones are positioned at $0.074, $0.076, and $0.081. For downside protection, $0.070 provides immediate support, with the annual low at $0.067 serving as the next major floor.
Market participants are monitoring $0.0710 as a critical threshold ā a daily close above this level could catalyze additional upward movement, whereas a breakdown below $0.070 may trigger intensified selling activity.
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