Altcoin Analysis: Telegram Meme Coin DOGS Positioned for Recovery

DOGS: Meme Coin on the Verge of Recovery

DOGS, the recently launched meme coin on the Telegram-associated TON blockchain, could be ready to bounce. Since its launch, the token has lost 32% of its value. With growing market interest in meme coins, DOGS has shown signs of resilience, making it one of the top 100 cryptocurrencies to keep an eye on.

Data Shows DOGS Buyers Are Back

DOGS, launched on August 26 following Telegram CEO Pavel Durov's arrest in France, saw a highly volatile Token Generation Event (TGE) where over 400 billion tokens were distributed to users. The heavy selling pressure caused DOGS' price to drop from $0.0017 to $0.0010. However, analysis of the hourly chart shows a notable increase in the Money Flow Index (MFI), indicating rising capital inflow into the cryptocurrency.

The MFI is a technical indicator showing the level of capital inflow into a cryptocurrency. An increase indicates that selling pressure is easing, and buyers are stepping in, creating a bullish divergence. This formation typically indicates that the price could be poised to rise.

DOGS Funding Rate Signals Bullish Sentiment

Additionally, the derivatives market shows similar optimism, as evidenced by the increasing funding rate. A higher funding rate suggests broader bullish sentiment, indicating that buyers are willing to pay sellers to maintain positions.

DOGS Price Prediction: The Meme Coin Looks Ready to Retest $0.0012

Further analysis of the hourly chart suggests that DOGS could be approaching price discovery. After the sharp drop from $0.0012, sellers appear to be losing momentum, with bulls defending the $0.0010 support level. Holding this support is crucial for a potential recovery. If DOGS maintains its position, a return to $0.0012 could be the next move. However, if it fails to hold $0.0010, new lows may follow.