Dogecoin rises 18% as the trade agreement promotes cryptocurrency market activity

Dogecoin (Doge) rose 18% this week, recovering the USD 0.20 brand after exceeding key technical levels on Thursday.

The rebound occurs after a new commercial agreement signed between the United States and the United Kingdom, which triggered a bullish impulse throughout the cryptocurrency market.

The Doge’s upward movement reflects the broader optimism of investors, with recoveries throughout the market that help it exceed the exponential mobile socks (EMA) of 50 and 100 days, historically strong resistance areas for the meme currency.

At the time of writing this article on Friday, Doge quoted at approximately $ 0.206, having established a support base above $ 0.20.

The renewed interest was accompanied by a strong increase in the volume of negotiation and the activity of derivatives, which suggests a greater participation of institutional and retail operators.

Fountain: Coinmarketcap

$ 13 million in liquidations

The Dogecoin rebound caused a wave of liquidations in the futures market, with approximately USD 13 million in positions eliminated in the last 24 hours.

According to Coinglass datashort liquidations represented the majority with USD 11.3 million, while the lengths represented only USD 1.6 million.

This imbalance indicates a manual Squeeze Short, in which a strong price increase forces traders with bearish positions quickly, pushing even higher prices in the process.

The open interest (OI) in Doge’s futures also rose 18% to USD 2.17 billion, a sign of the growing appetite of the operators.

The increase in OI, especially long positions, suggests that market participants are positioning for new increases.

The relationship between long and short of 2,4602 binance positions reinforces this trend, showing that more traders bet because Doge Suba.

The volume activity joined the bullish confirmation. The volume of operations of 24 hours of Doge shot 74.49% to the USD 4.5 billion, with a high volume during an upward trend that is generally considered a confirmation of the force of the impulse.

The head and inverse shoulders point to a rupture of USD 0.24

Dogecoin has come out of a classic inverse and shoulders, often seen as a sign of bullish reversal.

The structure, observed in the daily chart, projects a potential movement of 33% from the level of rupture, which places the next target price around 0.24 dollars.

The projection is based on the pattern height, measured from the head to the neckline, and is applied above the breakdown.

Currently, Doge is trying to stabilize above the 100 -day EMA at 0.20 dollars.

If this support is maintained, it is likely that the bullish impulse will continue in the next sessions.

The MACD indicator also shows a positive divergence, with green bars in the histogram on the central line that point to an increase in bullish pressure.

However, traders must remain cautious. The RSI has reached 70.31, entering the overcompra zone.

While this does not immediately indicate a reversal, it often precedes short -term corrections.

In the event that Doge goes back from the current levels, the 50 -day EMA in USD 0.18 can serve as a key support and reentry zone.