The US-UK trade agreement has lifted investors’ sentiment across digital assets. As of Friday’s writing, Doge was trading for around $0.206. Open interest rose 18% to $2.17 billion, driven by a long position.
Dogecoin (Doge) spiked 18% this week, regaining its $0.20 mark after surpassing key technology levels on Thursday.
The rally sparked bullish momentum across the crypto market following a new trade deal signed between the US and the UK.
Doge’s upward movement reflects broader investors’ optimism, and a market-wide recovery will help clear the 50- and 100-day exponential moving average (EMA).
As of Friday’s writing, Doge had traded for around $0.206, establishing a support base of over $0.20.
Renewed interest has suggested an increase in participation from institutions and retailers, accompanied by a sharp increase in transaction volume and derivatives activity.
Source: CoinMarketCap
$13 million liquidation
The Dogecoin rally has sparked a wave of liquidation in the futures market, wiping out positions worth around $13 million in the last 24 hours.
The short liquidation consisted of a majority of $11.3 million, with Longs accounting for just $1.6 million, according to Coinglas data.
This imbalance shows a shorter diaphragm in the textbook, where a rapid rise in prices will quickly lead to traders with bearish positions, and prices will rise further in the process.
Open interest (OI) on Doge futures also rose 18% to $2.17 billion.
The surge in OI is a particularly strong increase, suggesting that market participants are making even more profitable.
A long-term ratio of Binance of 2.4602 strengthens this trend, indicating that more traders will move higher on bets on Doge.
Volume activity added to bullish checks. Doge’s 24-hour trading volume spiked 74.49% to $4.5 billion, with the amount in the upstream path generally considered a confirmation of momentum strength.
Reverse head and shoulders target a $0.24 breakout
Dogecoin breaks out from the classic reversed head and shoulder formation and is often considered a bullish inverted signal.
The structure observed on the daily chart predicts a potential movement of 33% from breakout levels, bringing the next price target to around $0.24.
The projection is measured from the head to the neckline and is based on the height of the pattern applied above the breakout point.
Currently, Doge is trying to stabilize at $0.20, above its 100-day EMA.
If this support applies, bullish momentum could continue in the next session.
The MACD indicator also shows positive divergence, with a green histogram bar above the centerline pointing to an upward increase in pressure.
However, traders need to be careful. The RSI reached 70.31 and entered the excess zone.
This does not immediately indicate a reversal, but it often precedes a short-term fix.
If Doge retreats from its current level, the 50-day EMA may serve as a critical support and re-entry zone for $0.18.
