Dogecoin price could kick off the week on a bullish leg amid its recent surge in sentiment.
So far multiple signs indicating a high possibility of a demand surge in the next few days.
One of those signals was Dogecoin price position especially on the weekly chart.
The meme coin just concluded another week of moving a key fibobacci level based on the bottom and top of its Q4 rally.
For context, the meme coin dipped into the 0.5 and 0.618 Fibonacci zone at the end of January.
This has restricted Dogecoin price within the $0.235 and $0.282 price range. The meme coin exchanged hands at $0.241 at press time.
Dogecoin price action/ source: TradingView
The fact that price has been bearish but still managed to hold the bottom range of the Fibonacci pattern suggests that there was strong support.
Especially because Dogecoin price already retested the bottom of the Fibonacci range.
Dogecoin tops list of meme coins by market sentiment
Another major reason why Dogecoin could be about to experience another exciting week is the favorable social sentiment.
According to LunarCrush, Dogecoin had the highest social sentiment in the last 24 hours.
Source: X
The surge in social sentiment suggests that the market is starting to pay attention to DOGE. Especially at a time when it has been discounted by roughly 50%.
One of the reasons for the uptick in social activity around Dogecoin was prospects of it being integrated into X payment.
But could these observations be enough to trigger a substantial demand wave?
Is Dogecoin demand making a comeback?
A Dogecoin price uptick this new week would require a substantial wave of liquidity.
On-chain data revealed some interesting observations pertaining to DOGE demand profile.
As far as the derivatives segment was concerned, options volume was down by just over 58% in the last 24 hours.
However, open interest was up 15.12% during the same period
The divergent options volume and open interest usually indicate declining trading activity and a surge in new positions .
It may signal a sentiment shift from bearish to bullish considering that Dogecoin price has action has been mostly bearish since December.
The bearish sentiment has been dominant in the spot segment too. However, recent observations highlight a considerable decline in sell pressure.
To put things into perspective, spot outflows in the last 24 hours amounted to $5.05 million.
The highest single day spot outflows observed by Coinglass in 2025 was $166.99 million on 19 January.
Dogecoin spot flows / source: Coinglass
Also worth noting is that there was no observed spike in DOGE spot inflows. This means investors were still in a cautious mood, coupled with weak demand and hence its struggle to achieve a sizable recovery.
The weak demand situation means DOGE bears still have an opportunity to regain dominance if it fails to manifest strong demand.
Meanwhile, the Bitcoin fear and greed index recently bounced back to 50 after previously dipping to fear territory.
This recovery to neutral zone signals improving market sentiment that could pave the way for a demand recovery.
