Dogecoin is showing early signs of a potential turnaround after weeks of steady price declines. The popular Cryptocoin, which had struggled to regain momentum since peaking near $0.43 three months ago, is now seeing increased buyer interest and signs of accumulation. As market activity begins to pick up, the conditions may be forming for a possible price reversal—if bullish momentum continues to grow.

As of May 6, Dogecoin was trading at $0.1726, representing a 4.24% drop over the past seven days. The downtrend has been driven largely by weak buyer activity and broader crypto market uncertainty. However, the past 24 hours have shown some positive movement, with DOGE rising from $0.16 to around $0.174 on the daily chart. While modest, this uptick may signal a shift in sentiment, especially when coupled with increasing trading volume and options activity.

Trading volume for DOGE has surged by over 23%, while options volume has climbed 34%—clear signs that market participants are becoming more engaged. Such increases in volume often precede larger price movements, particularly when accompanied by rising buy-side pressure. Indeed, data suggests that buyers are slowly reclaiming control of the market. In the last 24 hours alone, Dogecoin traders purchased approximately 748.7 million DOGE, compared to 730 million sold, creating an order imbalance of nearly 14 million tokens in favor of buyers.

This imbalance is important because it reflects a strengthening of demand over supply. When buy orders consistently outpace sell orders, it typically indicates that investors expect prices to rise, prompting more accumulation. The presence of this imbalance supports the case for a potential trend reversal in the coming days.

Further strengthening the bullish argument is the behavior observed in both the spot and futures markets. In the futures market, long positions have become dominant, making up roughly 69.7% of all open contracts, compared to 30.3% in short positions. This suggests that the majority of traders are betting on a price increase. In the spot market, a negative netflow has persisted for the past three days, meaning more DOGE is being withdrawn from exchanges than deposited. This pattern usually indicates that investors are moving their assets into cold storage or private wallets, a classic sign of accumulation and growing confidence in the asset’s future.

Adding to this optimistic outlook is Dogecoin’s stock-to-flow (S2F) ratio, which has climbed to 79—its highest level in a week. The S2F ratio measures scarcity by comparing the current supply of DOGE to the rate at which new tokens are generated. A higher ratio indicates greater scarcity, which, when combined with steady or rising demand, tends to push prices upward. This recent increase in the S2F ratio suggests that fewer tokens are available for sale, creating a potential supply squeeze if demand continues to rise.

Still, it’s important to approach this potential reversal with cautious optimism. While data points toward a recovering market, much of Dogecoin’s next move depends on whether this accumulation trend can be sustained. AMBCrypto’s analysis suggests that if buyers continue to dominate and volumes remain high, DOGE could reclaim the $0.187 level and potentially break out of its current consolidation range. On the flip side, if bullish momentum weakens, the price could fall back toward $0.165, testing the resilience of recent gains.

In summary, Dogecoin is beginning to show signs of life after a prolonged period of selling pressure. Increased trading activity, a growing order imbalance in favor of buyers, and rising scarcity all point toward a shift in market sentiment. While it’s too early to confirm a full trend reversal, the foundation is being laid for a possible breakout—one that could reignite bullish enthusiasm in the Dogecoin community. Investors and traders alike will be watching closely to see if this early momentum turns into a lasting rally.