Dogecoin [DOGE] has declined by 16.23% over the past week, marking a significant drawdown for investors.

However, analysis suggests that DOGE may resume a bullish move this week, as the asset is trending upward while both spot accumulation and derivative long bets are increasing simultaneously.

Low liquidity puts DOGE behind

CoinMarketCap’s 90-day performance index shows that among the leading memecoins by market capitalization, Dogecoin has attracted the least liquidity, despite holding a $28.6 billion market cap.

As of writing, DOGE has risen by 0.04% over the past ninety days. In contrast, FARTCOIN, with a $1.11 billion market cap, has surged by 368%.

Source: CoinMarketCap

Despite this less-than-stellar performance, market analysis indicates that DOGE could be gearing up for a rally.

On the daily timeframe, Dogecoin has traded into a critical level—an ascending support line.

This zone could act as a catalyst for a major price move, with a target set at $0.25, which represents a 33% rally from the current price level.

Source: TradingView

But if the token fails to build enough momentum, the price could reverse and retest the origin of the ascending pattern, which is around $0.14.

Retail traders are taking sides

Retail traders have begun taking positions in the derivatives market, with a noticeable uptick in long bets.

At press time, the Long/Short Ratio stood at 1.01, signaling a tilt toward bullish sentiment. A ratio above 1 implies higher buying volume than selling volume, which strengthens the case for a rally.

Source: CoinGlass

A close examination of Open Interest (OI) in both options and futures contracts shows a steady rise. OI represents the total value of unsettled derivative contracts within a specific period.

At the time of writing, OI in the Futures market has reached $2.06 billion, while the options market stands at $347,000. Sustained growth in OI alongside increasing buy volume suggests that DOGE may continue climbing.

DOGE could see more inflows

In the past 24 hours, DOGE has seen notable inflows, with $4.77 million worth of tokens moved into private wallets by spot traders.

Source: CoinGlass

When a large amount of tokens moves off exchanges and into private wallets, it usually indicates accumulation in anticipation of a long-term rally.

This also implies that the tokens are less likely to return to the market for sale. If such inflows continue, DOGE could trend toward the $0.25 target as mentioned above.