Dogecoin (DOGE), the largest memecoin by market cap, has seen a more than 10% increase in the past 24 hours as memecoins bounce back.
The current price of DOGE is $0.1262, reaching its highest value since September 29 with a 44% increase from the local low of $0.08888 on September 6.
Trading activity has also contributed to DOGE’s price surge, with spot trading volumes reaching $1.8 billion on October 16, up 95% in the past 24 hours and 165% in the past seven days. Its market cap has surpassed $18 billion, solidifying its position as the largest memecoin globally.
On October 16, DOGE was the most traded memecoin, surpassing Pepe (PEPE) with a trading volume of over $600 million.
The recent bullish momentum of DOGE can be attributed to several factors, including its attempt to break a multi-month downtrend.
Many crypto traders anticipate that Dogecoin will continue to build on its current momentum for a sustained recovery.
Technical analysis suggests that DOGE is currently above a 180-day descending trendline, with key resistance levels at $0.13 and $0.14. Additionally, the MACD indicator has given a bullish signal.
The latest rally by DOGE has turned critical levels into support, such as the 50-week and 100-week Simple Moving Averages, which could propel the price towards the high of $0.2286.
Despite the optimism, futures traders remain cautious, with significant short and long positions at risk of liquidation if the price fluctuates.
The increase in Dogecoin’s price on October 14 correlates with a rise in open interest (OI), a crucial metric for market sentiment analysis.
DOGE’s OI reached $755.5 million on October 16, marking a 27.3% increase from the previous day. This surge in OI indicates growing demand for leveraged long positions in DOGE.
The funding rate for perpetual futures also suggests a bullish sentiment, with traders willing to pay more to hold long positions in DOGE, potentially driving prices higher.
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