+654% Dogecoin (DOGE) Futures Flow Imbalance Spotted: Is This the Key to Growth? - U.Today

  • Dogecoin’s declining trend
  • Will the trend flip? Dogecoin is displaying an odd short-term signal that is difficult to ignore: a +654% imbalance in futures flows over a five-minute period. Such a spike does not occur in a vacuum. It suggests an abrupt infusion of liquidity into DOGE derivatives, probably due to aggressive positioning as opposed to passive retail noise

Dogecoin’s declining trend

This indicates that something is changing under the hood, but it does not by itself ensure a reversal of the trend. DOGE is still technically vulnerable on the price chart. The asset has been grinding lower for weeks after losing the 50 EMA, creating a distinct declining structure

Article imageDOGE/USDT Chart by TradingViewThat damage has not vanished overnight. But the most recent recovery from local lows indicates that buyers are intervening just when the downward momentum was beginning to wane. Even though the overall trend is still under pressure, the price is trying to stabilize above short-term moving averages and the RSI has lifted from oversold territory. An essential layer is added by the futures data

Will the trend flip?

The five-minute window’s net flow of +654% indicates a significant increase in leveraged activity, most likely driven by speculative longs. When downside liquidity has already been extracted and larger players start looking for a reversal, this type of imbalance frequently manifests close to local bottoms. It is consistent with early-stage recovery dynamics rather than continuation selling, but it does not confirm a complete trend flip

Spot flows, on the other hand, are much less explosive and stay mixed. It matters. If momentum stalls, a futures-led move without spot confirmation may quickly fade. However, DOGE may move from a dead-cat bounce into a more significant recovery leg if futures positioning is accompanied by persistent spot demand. Regaining the 50 EMA and staying above it would be the next technical challenge in that case

This level currently serves as resistance and a test of bulls’ credibility. Investors need to be disciplined when handling this setup. The infusion of liquidity does not imply that risk has disappeared but rather that interest is resuming. Sharp pullbacks are still possible if leveraged longs are flushed and volatility is likely to stay high

Nevertheless, the combination of aggressive futures flows, increasing momentum and exhausted downside makes a plausible fundamental case for a short-term recovery attempt. To put it briefly, Dogecoin is not saved, but it is also awake. The market is paying attention once more, and reversals typically begin with this.

DOGE5,46%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)