Telegram meme coin DOGS shows potential signs of recovery
DOGS (CRYPTO:DOGS), a meme coin launched on the Telegram-associated TON blockchain, could be gearing up for a rebound after losing 32% of its value since its launch on August 26.
The recent activity around DOGS suggests that it might be poised for a price recovery if the current trends continue.
Market data shows growing interest in the meme coin, positioning it as one of the top 100 cryptocurrencies to watch.
Since its Token Generation Event (TGE), where over 400 billion tokens were distributed to users, DOGS experienced significant volatility.
The heavy selling pressure initially caused the token’s price to plummet from $0.0017 to $0.0010.
However, an analysis of the hourly chart reveals a notable increase in the Money Flow Index (MFI), a key technical indicator that shows the level of capital inflow into a cryptocurrency.
The rising MFI indicates that selling pressure is easing, and buyers are stepping in, creating a bullish divergence.
This pattern often signals that a price increase could be on the horizon.
The derivatives market is also showing signs of optimism.
The funding rate for DOGS has been increasing, which suggests that traders are anticipating a price rise.
A higher funding rate means that buyers (longs) are paying sellers (shorts) to keep their positions open, indicating a bullish sentiment in the market.
If the current trends continue, DOGS could be moving towards its overhead resistance level.
Technical analysis suggests that DOGS could be approaching price discovery, a stage where the market determines the token’s fair value based on supply and demand dynamics.
After its sharp decline from $0.0012, DOGS has managed to hold support at the $0.0010 level.
Maintaining this support is crucial for a potential recovery to $0.0012.
However, if the token fails to hold this support, it could face further declines.
While DOGS is currently testing a critical support level, signs point to a potential rebound if buying interest continues to grow.
Market participants will need to watch closely to see if the meme coin can sustain its current momentum and achieve a recovery in the coming days.
At the time of reporting, the Dogs (DOGS) price was $0.00116.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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