Dogecoin (DOGE) maintains a key support zone but market momentum remains conflicting

Dogecoin (DOGE) rises nearly 2% at the time of writing on Monday, regaining some momentum after a 3.57% decline in the previous session. Nevertheless, this meme coin still faces the risk of losing its accumulation zone as institutional demand weakens and the upward momentum shows signs of slowing down. Conversely, the derivatives market is experiencing a wave of increasing Long positions, reflecting expectations of a short-term rebound, thereby boosting capital flows into DOGE futures contracts.

Retail investor demand for DOGE increases, ignoring Long position liquidations

Data from CoinGlass shows that open interest (OI) in Dogecoin futures contracts has increased by 4.88% over the past 24 hours, reaching $1.49 billion. This development indicates that the nominal value of open derivatives positions continues to expand, likely driven by new capital entering the market or investors increasing leverage usage.

However, correction pressure still exists as the total value of liquidated buy (Long) positions in the past 24 hours has reached $3.33 million, significantly higher than the $799,590 in short (Short) positions. This discrepancy suggests that bears are temporarily in control in the short term.

Data on DOGE derivatives | Source: CoinGlassAlthough market sentiment shows signs of improvement, the long/short ratio chart recorded an increase in Long positions to 51.05% on Monday from 45.83% on Sunday, indicating growing confidence in an upside scenario.

DOGE long/short ratio | Source: CoinGlassFrom an institutional perspective, data from Sosovalue shows that Dogecoin ETFs received inflows of $171,920 last week. Notably, all this capital entered only on Wednesday, while the other days recorded zero net flow, reflecting cautious interest from institutional players toward this meme coin, which remains somewhat hesitant and not yet sustainable.

Data on DOGE ETFs | Source: Sosovalue## Dogecoin accumulation zone faces risk as buying pressure wanes

Dogecoin remains trapped within a prolonged accumulation zone, bounded by the November 21 low at $0.13321 and the November 26 high around $0.15681. At the time of reporting, DOGE is struggling to maintain this important support level, despite posting nearly 2% gains during Monday’s trading session.

In a positive scenario, if prices can break out of the current trading range, a technical rebound could bring DOGE back to test the resistance zone at $0.15681, before targeting the Pivot R1 at $0.17882.

Daily DOGE/USDT chart | Source: TradingViewHowever, momentum indicators on the daily timeframe still do not favor the bulls. The RSI oscillates around 40, moving sideways between neutral and oversold zones, indicating weakening demand and a bearish bias.

Notably, the MACD line is approaching the signal line, increasing the risk of a bearish crossover — a technical signal often indicating a continuation of DOGE’s weakening trend.

If Dogecoin fails to hold the support level at $0.13321, selling pressure could push the price below April’s low at $0.12986, with a deeper decline targeting the S1 Pivot at $0.12319.