$1B Erased, Then Reborn: Dogecoin Rebounds From $0.08 Lows - Crypto Economy

TL;DR:

• The memecoin managed to recover to $0.098 after touching a technical floor of $0.08, its lowest level in nearly two years.
• Open interest in futures markets plummeted by 16.7%, reflecting aggressive deleveraging by traders.
• Technical indicators show extreme oversold conditions, suggesting a potential exhaustion of selling pressure.

The memecoin segment remains under high tension, especially after Dogecoin rebounded from its August 2024 lows. Following a sharp drop that shattered the psychological support of $0.10, the asset found liquidity in the $0.08 zone before starting a 7.63% climb over the last 24 hours.

While the “dog coin” certainly recovered, on-chain data reveals that sell volume outpaced buy volume by a margin of 400 million units during the peak of volatility. This dynamic proves that, although there was a response from buyers at lower levels, the market structure remains under considerable bearish dominance.


Massive Liquidations and the Moving Average Challenge

Meanwhile, in the derivatives sector, the scenario was equally complex, as net futures flow recorded outflows of $39 million. Consequently, open interest fell below $1 billion, indicating that many investors chose to close their positions to avoid further losses amid the uncertainty.

Technically speaking, the stochastic RSI sank to the 13.70 level, confirming a deep oversold state that facilitated the current bounce. However, the price is still trading below the 20-day exponential moving average (EMA20), located at $0.11, which acts as a tough immediate resistance to overcome.

In summary, for this rally to be sustainable, bulls must consolidate the price above the $0.095 barrier and re-attack the $0.10 level. Otherwise, any sign of weakness could drag the value back to recent lows, keeping the short-term bearish trend fully active.