Telegram Meme Coin DOGS Eyes Rebound After 32% Price Drop

In Brief:

DOGS, a meme coin on the TON blockchain, has seen a 32% price drop but shows signs of recovery with increasing capital inflow and rising Money Flow Index (MFI).

The derivatives market indicates bullish sentiment with a rising funding rate, suggesting that DOGS might retest its $0.0012 resistance level.

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Telegram Meme Coin DOGS Eyes Rebound After 32% Price Drop

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DOGS, a meme coin launched on the Telegram-associated TON blockchain, is showing signs of a potential rebound after experiencing a 32% drop in value. Since its launch on August 26, the token has been volatile, but recent market indicators suggest a shift in momentum.

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Rising Money Flow Index and Market Sentiment

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Following the Token Generation Event (TGE), DOGS' price fell from $0.0017 to $0.0010 due to heavy selling pressure. However, the Money Flow Index (MFI), a key technical indicator of capital inflow, has been rising, indicating an easing of selling pressure and the return of buyers. This bullish divergence suggests that DOGS might be poised for a price increase.

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Additionally, the derivatives market reflects optimism, with an increasing funding rate showing that buyers are paying sellers to maintain positions, signaling a broader bullish sentiment. This trend indicates that DOGS could be moving towards testing its overhead resistance level at $0.0012.

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Potential Price Recovery for DOGS

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Analysis of the hourly chart reveals that DOGS may be entering a price discovery phase, with bulls defending the $0.0010 support level. Maintaining this support is crucial for a potential recovery. If DOGS holds its ground, a return to $0.0012 could be imminent. However, failure to sustain the $0.0010 support might lead to further declines.

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