Dogecoin (DOGE) rebound as the market bets on a signal to cut interest rates from the Fed

Dogecoin (DOGE) continued to hold steady momentum in Wednesday’s session, after gaining nearly 4% the previous day. In the derivatives market, the data showed a strong wave of long positions and the return of retail investors, amid a rebound in the crypto market on expectations that the Fed will cut interest rates by 25 basis points. Technically, DOGE remains neutral, but the short-term resistance line is becoming the focus to watch as indicators suggest that selling pressure has begun to weaken.

Dogecoin gains strength from retail investors

Dogecoin is recording strong buying power from retail investors, revealing the possibility of a new recovery based on increased speculative sentiment. According to data from CoinGlass, the open contract (OI) DOGE futures has soared to $1.49 billion, up 10.29% in just 24 hours – a clear signal that risk appetite is making a comeback in the meme coin’s derivatives market.

At the same time, the funding rate according to OI is reaching 0.091%, reflecting the trend in favor of the bulls when traders actively pay fees to maintain long positions.

! doge-phuc-hoiDOGE derivative data. Source: CoinGlassThe long/short ratio also continued to strengthen the bulls’ dominance, accounting for 50.83% of all open positions, up significantly from 48.44% on Sunday.

! doge-phuc-hoiDOGE long/short ratio chart | Source: CoinGlassNot just retail investors, data from CryptoQuant also shows the growing participation of large wallets – aka “whales”. The average size of DOGE futures orders increased, mainly coming from many high-volume transactions, indicating that major players are betting on a further rally in Dogecoin.

! Source: CryptoQuant## Dogecoin aims to break out of the resistance trendline to extend the upside

Dogecoin is currently approaching the short-term resistance line, formed by the connection of the two peaks on October 26 and November 11, around $0.1480. If the price can close in the green on Wednesday, DOGE is likely to confirm the upward breakout above this trendline and open up room for upside to the next target zone: the 50-day EMA at $0.1644.

Just above, the area around $0.1800 — the strong supply zone highlighted in red on the chart — along with the 200-day EMA at $0.1970 could become key stops for DOGE’s upward momentum.

! DOGE/USDT Daily Chart | Source: TradingViewHowever, the technical signals on the daily frame are still relatively neutral. The RSI is at 46, oscillating halfway between the neutral zone and the oversold threshold. Meanwhile, the MACD indicator gradually prospered, with the MACD line and the signal line gradually approaching the 0 mark.

On the flip side, if DOGE slides below the April low at $0.1298, the price could continue to retreat towards deeper support — the October 10 bottom around $0.0950.

SN_Nour