2024-10-16 16:41 |
Dogecoin (DOGE), the world’s most popular memecoin, surged by more than 10% in the last 24 hours, marking a strong recovery in the broader memecoin market.
Trading activity for DOGE saw a sharp uptick, pushing its price to $0.127—its highest point since late September.
This rally is part of a broader trend, with DOGE gaining 44% from its local low of $0.08888 recorded on September 6.
The spike in Dogecoin’s price was accompanied by a significant rise in trading volume, which surged 95% in the last 24 hours to reach $1.8 billion.
Source: CoinMarketCap
Over the past week, trading volume has jumped by 165%, indicating renewed interest in the memecoin.
This increased activity also pushed DOGE’s market capitalization back over the $18 billion mark, reinforcing its position as the leading memecoin, according to data from CoinMarketCap.
Reasons behind DOGE’s bullish momentumSeveral factors contributed to Dogecoin’s recent price surge, with analysts predicting the memecoin could sustain this upward trend.
One key technical signal driving optimism is the break above a multimonth descending trendline, suggesting a potential end to DOGE’s prolonged downtrend.
Crypto technical analysts are closely watching key resistance levels at $0.13 and $0.14 as Dogecoin continues to gather momentum.
Source: TradingView
The MACD (Moving Average Convergence Divergence) indicator also flashed a bullish signal, with the MACD line crossing above the signal line, which typically suggests a shift toward positive market sentiment.
Furthermore, DOGE has flipped important levels into support, including its 50-week and 100-week simple moving averages (SMAs), bolstering the case for a continued price recovery.
Another critical factor behind Dogecoin’s rally is the sharp rise in open interest (OI), a metric that helps gauge market sentiment and predict future price movements.
On October 16, DOGE’s OI soared to $755.5 million, a 27.3% increase from the previous day.
This surge in open interest reflects the growing demand for DOGE, particularly among traders taking leveraged long positions in the futures market.
The increasing demand is further underscored by the rising perpetual futures funding rate, which suggests that traders are willing to pay more to maintain their long positions, signaling sustained optimism.
As a result, the market remains bullish on DOGE, with analysts expecting further price gains if it can break through key resistance levels.
While there is some skepticism among futures traders about an immediate rebound, the current market dynamics indicate that Dogecoin is poised to build on its recent momentum, potentially pushing its price even higher in the coming days.
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