Long positions are far outpacing short positions in the Dogecoin derivatives market, raising expectations for a rebound.

On July 10, blockchain outlet U.Today reported that Dogecoin long-short ratios at major exchanges generally leaned bullish.

The key is investor sentiment rather than price action. Dogecoin has stayed in a downtrend in recent months, but derivatives participants appear to be betting first on a potential recovery. Current market data show the long-short ratio is "clearly favorable to bulls."

By exchange, OKX users showed a stronger bias toward buying. On OKX, the long-short ratio was close to 3.5 to 1. Binance accounts also held about 2.5 long positions for each short position. Among top traders on Binance, "more than 3 bullish positions for each bearish position" was maintained.

This suggests both retail investors and professional traders are expecting a positive move in Dogecoin's price. Overall, it was described as a setup close to "4 bulls for each bear." But separately from derivatives sentiment, the spot chart remains in a cautious phase.

Technically, the long-term trend has not yet turned. The 200-day moving average remains above the 50-day and 100-day moving averages, and Dogecoin is trading below these key moving averages. That means buying pressure has not yet reversed the long-term downtrend.

Even so, the level drawing market attention is around $0.07. After a prolonged selloff, Dogecoin rebounded from a recent local low and has started to show signs of price stabilisation. The relative strength index, or RSI, has also begun to recover from oversold territory, suggesting selling pressure could ease. The price has not yet confirmed a trend reversal, but a key feature of the current setup is that investors are building positions on the upside first.

The next point to watch is whether it breaks through resistance. If buying pressure clears resistance around $0.08 and then breaks through the $0.09 zone, it was explained, the current bullish bets could translate into an actual price rebound.

Risks are also significant. If Dogecoin fails to hold support and falls again while long positions are overly crowded to one side, leveraged long positions could be liquidated all at once, the outlet reported.