Dogecoin Price Prediction: AO Bars Flash Bullish Divergence Near $0.08 as Exchange Outflows Top 175M DOGE

Dogecoin (DOGE) price continues to struggle under intense selling pressure despite Bitcoin (BTC) and the rest of the crypto market moving up due to easing geopolitical tensions.

The price of DOGE has dropped from $0.090 on June 15 to $0.087 on June 16, but the AO bars are now showing a bullish divergence, suggesting that the bearish momentum is becoming weak.

More than 175 million DOGE coins have also been removed from exchanges since June 12, suggesting that the sell-side pressure might ease, as fewer coins become available on exchanges.

Dogecoin Price Holds $0.08 Support as Exchange Outflows Surge

Dogecoin price remains above the support level of $0.08 since June 6, and this is likely because of ongoing outflows of DOGE coins from exchanges.

Data from Coinglass shows that there have been more than $14 million worth of coins that have been removed from exchanges since June 12. This $14 million equates to around 175 million coins at the current price.

The fact that spot outflows have been more than inflows since June 12 suggests that long-term holders have been absorbing the coins that sellers have been dumping on exchanges. These buyers have helped the price of DOGE to hold this support at $0.08.

Earlier speculation that SpaceX might fuel a Dogecoin price rally might also be causing this rise in exchange outflows, as traders anticipate that the buzz around the Elon Musk company going public might draw in buyers.

AO Bars Flash a Bullish Divergence Suggesting Potential Rebound

The price of Dogecoin has dropped by 4.3% since June 15 to trade at $0.087 at the time of writing.

But the AO bars that are green and shrinking despite being on the negative side are not reflecting this drop, and instead, they are creating a bullish divergence.

When the price drops, the AO bars usually turn red and grow in length to show that bears are getting a good grip.

But this is not the case for Dogecoin because the AO bars have remained green and are now shortening, and that shows bears are losing their grip, and the ongoing drop in the value of DOGE might be just temporary.

However, Dogecoin is still trading below the 20-day, 50-day, and 100-day EMAs, and this suggests that the short-term momentum is still leaning towards the bearish side.

DOGE price will confirm an uptrend if it moves above the 20-day EMA resistance at $0.090. It tested this obstacle on June 15, but weak buying pressure prevented it from breaking out.

A move above $0.090 will see bulls target the psychological resistance at $0.10, with a move above it set to precede a bullish long-term Dogecoin price outlook.

Dogecoin’s Open Interest Hits 2-Week High as Short Squeeze Looms

Data from Coinglass shows that Dogecoin’s open interest is up by 3.92% to $1.20 billion, its highest level in two weeks. Again, this OI shows a bullish divergence because it is rising while the price of DOGE is dropping.

The rise might be coming from short sellers who are betting against Dogecoin. This is because the long/short ratio on Dogecoin remains below 1, and that shows that short positions are more than long positions.

This ratio has been below 1 for six straight weeks, as seen in the above chart, showing that there has been little conviction among traders that the Dogecoin price will rise.

But such an aggressive rate of short positioning also creates the possibility of a short squeeze occurring. This is because when a vast number of short positions are wiped out, short sellers are forced to buy, and Dogecoin price might rise.