Dogecoin's Price May Be Due for Correction After Strong Rally

Dogecoin has emerged as one of the top performers among cryptocurrencies in the last week, with a 12% increase in its value. This surge has seen Dogecoin surpass the $0.1000 resistance zone, but analysts are warning that the coin's price may be due for a correction.

The leading memecoin's rally is attributed to improving sentiment in the broader market and its ability to hold above the 50-day Exponential Moving Average (EMA). However, derivatives data indicate declining retail demand for Dogecoin, which could lead to selling pressure and a reversal of its recent gains.

According to CoinGlass, the DOGE futures Open Interest (OI) has dropped by over 4% in the last 24 hours, indicating reduced notional value of outstanding contracts. The OI-weighted funding rate has also decreased to 0.0019%, down from 0.0043% on Monday, suggesting reduced bullish interest among traders.