According to Cointelegraph, Dogecoin (DOGE) has emerged as one of the top performers in the cryptocurrency market, surpassing major rivals like Bitcoin (BTC) and Ether (ETH). This surge is attributed to a series of optimistic updates, including a cryptic tweet from Elon Musk mentioning the memecoin's official ticker.
DOGE's price has increased by approximately 3% in the last 24 hours, reaching $0.106 on September 13. This rise is part of a rally that began six days ago when Elon Musk, a long-time supporter of Dogecoin, suggested the idea of establishing himself as the head of a new government institution called DOGE, an acronym for the Department of Government Efficiency. Since Musk's tweet, DOGE's price has surged by 16.25%, reminiscent of previous price booms driven by Musk's influence. This indicates that many traders are still eager to capitalize on Musk's impact, betting on short-term price gains.
Dogecoin's recent gains are also accompanied by a notable increase in its open interest (OI) and funding rates in the futures market. Data from Coinglass shows that DOGE Futures' OI has risen from $442.37 million on September 7, when Musk mentioned Dogecoin in his tweet, to $459.18 million on September 13. Additionally, DOGE's funding rates have shifted from extremely negative to positive during the same period, climbing to 0.14% per week from 0.21% per week six days ago. This rise in OI and the flip to positive funding rates suggest a shift toward bullish sentiment in the DOGE futures market following Musk's tweet.
Technically, DOGE's gains are part of a rebound occurring within its prevailing falling wedge pattern. On September 7, the memecoin tested the wedge's lower trendline as support, similar to its multiple rebound moves since March. It now faces significant resistance at its 50-day exponential moving average (50-day EMA) around $0.106. A decisive close above the 50-day EMA could push DOGE's price toward the wedge's upper trendline near $0.108. If a breakout above the upper trendline occurs, the price could rise by as much as the wedge's maximum height, potentially reaching $0.193 by the end of the year.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
