Dogecoin (DOGE) May Be In A Corrective Phase, But Derivatives Traders Remain Bullish

Dogecoin (CRYPTO: DOGE) may be undergoing a period of correction, but that hasn’t stopped derivatives traders from ramping up bullish bets on the meme coin.

What Happened: More than 72% of all Binance traders had bullish positions on BTC at the last count, according to Coinglass, suggesting hopes of a near-term price spike.

The percentage of traders bullish on Dogecoin has been increasing steadily from 68.2% to the present value over the last three days. Interestingly, DOGE’s price has dropped by nearly 9% during this time.

At the same time, more than 75% of Binance’s top traders, who have a higher level of expertise compared to retail investors, were positioned long on DOGE.

Crucial Indicator: The key technical indicator, Relative Strength Index (RSI), on Bollinger Bands clocked in at 32.84, indicating that DOGE was 'oversold' at the last check.

However, the crucial Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a “Sell” signal for DOGE, on TradingView.

Additionally, the Bull Bear Power indicator, which measures the strength of buyers and sellers, was "Neutral."

Why It Matters: These findings come as Dogecoin pulled back on Monday, joining a broader risk-off mood ahead of the Federal Reserve’s upcoming interest rate decision.

Large transactions valued at over $100,000 spiked by 41% in the last 24 hours, and the daily active address count went up nearly 35%, according to IntoTheBlock.

According to Benzinga Pro, DOGE was trading at $0.1648, down 3.95% in 24-hour trading. The coin has fallen nearly 7% over the seven-day period.