Dogecoin [DOGE] is poised to reverse its current outlook as sentiment appears to be shifting, and price action turns bullish. Recently, on-chain metrics reveal that both traders and investors have shown strong interest on the long side, while the daily chart shows a bullish breakout.

On the bright side, exchanges have been continuously witnessing substantial outflows, which is usually seen as a bullish sign as it implies that traders are moving their assets from exchanges to personal wallets, potentially for holding or investing.

According to the on-chain analytics firm Coinglass, exchanges have recorded an outflow of over $3.27 million worth of memecoins in the past 24 hours.

This substantial outflow indicates potential accumulation and has the potential to create buying pressure and drive a further upside rally, as sentiment across the crypto landscape appears to be improving.

Traders’ eyes on long bets

In addition to the exchange outflows, another major bullish signal comes from the DOGE Long/Short ratio. At press time, this ratio stood at 1.116, indicating bullish market sentiment among traders.

This metric not only reflects positive sentiment but also shows that traders are favoring long positions over short ones, a trend that typically appears when the ratio moves above 1.

When combining these on-chain metrics, it appears that bulls have been dominating the asset and may be supporting DOGE in shifting its bearish trend.

Dogecoin’s technical analysis and key levels

According to AMBCrypto’s technical analysis, DOGE has broken out from a descending trendline that has acted as strong resistance since January 2025.

Source: TradingView

DOGE has struggled with this trendline, facing selling pressure and price declines upon reaching this level. However, the recent breakout suggests that bearish sentiment may start to shift.

If DOGE closes a daily candle above $0.165, it could rise by 24%, reaching $0.207 in the coming days. Despite this bullish breakout, the memecoin remains below the 200-day Exponential Moving Average (EMA) on the daily timeframe.

This indicates that DOGE is still in a downtrend, with bears maintaining dominance.

On the other hand, DOGE’s Relative Strength Index (RSI) stands near 50, suggesting room for growth. It is neither overbought nor oversold, which could allow DOGE to gain further bullish momentum.

At press time, DOGE was trading at $0.1643, marking a 1.50% price increase in the past 24 hours. During this period, trading volume rose by 15%, showing greater market participation than the previous day.