Dogecoin (DOGE) Price Rallies 5% as Bullish Traders Leverage $41.2M in Long Positions

Dogecoin (DOGE) Price Rallies 5% as Bullish Traders Leverage $41.2M in Long Positions

Dogecoin's price has experienced a notable surge, opening at $0.144 and gaining 10% within 48 hours. This increase pushed the price to a peak of $0.157 during intraday trading before facing stiff resistance. At press time, Dogecoin's price was up 5.09%, trading at $0.150950, with a 24-hour trading volume of $2,108,725,378. Concurrently, the DOGE's market capitalization surged by 4.96% to $21,812,322,857.

DOGE/USD 24-hour price chart (source: CoinMarketcap)
DOGE/USD 24-hour price chart (source: CoinMarketcap)

This rally was supported by bullish traders in the derivatives markets, who deployed leveraged positions worth $41.2 million. This strategic move indicated strong optimism among traders, hoping to amplify profits if the spot price continues to rise. The disparity between leveraged long positions and short contracts, valued at $12.7 million, further emphasized the bullish sentiment.

Market Conditions and Trading Volume

The recent increase in Dogecoin's price was influenced by broader macroeconomic factors and positive sentiment in the crypto market. The anticipation of favorable US CPI and PPI data played a significant role in driving the price up. 

Additionally, the online return of Keith Gill, known as "Roaring Kitty," who previously fueled the GameStop rally in 2021, also contributed to the upward momentum. His presence sparked renewed interest in meme tokens, including DOGE, which saw its 24-hour trading volume soar to $2 billion from $600 million.

This heightened trading activity indicated robust interest and engagement from investors. DOGE's performance outpaced most other altcoins, suggesting a strong market position for meme tokens in the near term. The return of "Roaring Kitty" and the potential introduction of digital payments by X further added to the bullish outlook for Dogecoin.

DOGE Technical Indicators and Price Forecast

Technical analysis of Dogecoin's price chart revealed a promising position. The coin's 30-day moving average recently crossed above the 200-day average, forming a "golden cross," often associated with potential strong gains. The relative strength index (RSI) also showed a positive trend, remaining between 50 and 60, which indicated room for further growth without entering overbought territory.

Furthermore, data from IntoTheBlock's Global In/Out of the Money (GIOM) model supported a bullish forecast. The model showed that breaking above the $0.15 level had established a significant support cluster around $0.14, involving 98,000 holders who acquired 5.32 billion DOGE. This support level, valued at approximately $800 million, suggested that bulls would likely defend this price point vigorously.

Is Dogecoin (DOGE) Near a Breakout? 

The bullish momentum and increased market interest suggest that Dogecoin has the potential to reach higher price levels in the near future. If the upcoming US CPI and PPI data deliver positive outcomes, Dogecoin's price could approach the $0.20 mark, encountering minimal resistance. 

DOGE/USD 30-day price chart (source: TradingView)
DOGE/USD 30-day price chart (source: TradingView)

The substantial difference between long and short positions, along with robust support at $0.14, positions DOGE well for further gains.

However, if Dogecoin fails to maintain its current support level, it may face a downside risk, potentially retreating to $0.14 or lower. The technical indicators, including the Moving Average Convergence Divergence (MACD) and the Chaikin Money Flow (CMF) index, also pointed to positive momentum, indicating investor confidence and a potential for continued price appreciation.

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