Dogecoin (#doge⚡ ), the most well-known meme coin with the largest market capitalization, has surged by more than 6% in the past 24 hours and is now trading at $0.1243. This significant rise marks a return to heights DOGE hasn't seen since September 29, 2024. After hitting a local low of $0.0890 in early September, Dogecoin has rebounded with a 38.88% price increase.
Recovery Driven by Increased Trading Activity
The price increase of Dogecoin has been accompanied by a sharp rise in trading volumes. On October 17, spot trades for DOGE reached $2.29 billion, a 71.42% increase compared to the previous 24 hours. This development pushed DOGE's market capitalization back above $18 billion, maintaining its position as the leader among meme coins.
Dogecoin performed better than its competitors like Pepe (PEPE) on October 17, with its trading volumes surpassing PEPE by more than $1.365 billion, underscoring its dominance in the meme coin sector.
Bitcoin's Impact on Dogecoin’s Growth
One of the key factors behind Dogecoin's rise is its strong correlation with Bitcoin (#BTC☀ ). As soon as Bitcoin crossed the $68,000 mark, the positive effect spilled over to other altcoins, including DOGE. Analysts are now watching closely to see if Bitcoin can exceed $70,000, which could further boost Dogecoin's rise to the key resistance level of $0.14 that traders are watching.
Breaking Out of a Multi-Month Downtrend
Several experts have noted that Dogecoin has broken out of its multi-month downward trend. Analyst Mikybull Crypto highlighted that DOGE recently breached the 180-day downward trend line, indicating the potential for continued growth. Similarly, Alstreet Bets, a well-known altcoin analyst, stated on October 16 that Dogecoin is “ready to take off.” The resistance levels at $0.13 and $0.14 are now the key milestones traders are watching.
Additionally, the MACD indicator is reinforcing bullish signals, suggesting that market conditions remain favorable for Dogecoin. Support at key levels, including the 50-week and 100-week SMA at $0.1073 and $0.1102, is laying the foundation for further growth, with traders aiming for the March 28 high of $0.2290
Rising Open Interest (OI) Confirms Bullish Trend
Another factor supporting Dogecoin’s rise is the increase in open interest (OI). On October 17, DOGE's OI rose to $784.22 million, a 32.95% increase from the previous day. Moreover, the funding rate for perpetual futures contracts of Dogecoin indicates growing demand for long positions, with an eight-hour average funding rate of 0.0102%. This means traders are willing to pay a premium to hold their positions, reflecting optimism about Dogecoin's price trajectory.
Dogecoin on the Rise: Will DOGE Surpass $0.14 Over the Weekend?
Given the positive market signals, increased trading activity, and growing demand for long positions, it's possible that Dogecoin could reach the key $0.14 mark over the weekend. Traders and analysts alike will be closely watching to see if this cryptocurrency exceeds expectations.
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