The price of Dogecoin has risen over 3.5% in the past 24 hours to $0.4075, aligning with the recovery of the entire cryptocurrency market, which rose approximately 3.3% during the same period to $3.32 trillion.
Data from Cointelegraph Markets Pro and TradingView shows that DOGE's price has fluctuated between $0.35 and $0.45 over the past two weeks.
Although DOGE's current exchange rate is 15% lower than the multiyear high of $0.4808 on November 23, several factors support further gains for this largest memecoin.
Let's take a closer look at the factors driving DOGE's price increase today.
DOGE Rises Alongside Other Memecoins
This bullish sentiment is not limited to Dogecoin; driven by Bitcoin's rebound above $95,000, cryptocurrency prices have also risen across the entire memecoin sector.
Shiba Inu, the second largest memecoin by market capitalization, follows in DOGE's footsteps, rising 3.6% in the past 24 hours to a trading price of $0.00002554. Pepe, an Ethereum-based memecoin, has increased over 6.5% in the past 24 hours, trading above $0.0000197.
Other top memecoins, including Solana-based Bonk and Dogwifhat, have also seen slight gains in the past 24 hours.
Similarly, the total market capitalization of memecoins has grown by 5% in the past 24 hours and by 94% so far this month, reaching $115 billion at the time of this article's publication.
Meanwhile, according to Dune's data, for the week ending November 22, the weekly memecoin trading volume across all blockchains, including Ethereum and Solana, totaled $391 million, a 157% increase from $152 million in the first week of November.
As of the time of this article's publication, the cumulative trading volume of all memecoins has approached $55 million, reaching $54.75 billion.
DOGE Financing Rate Soars
Before the bullish price trend of DOGE on November 28, the open interest weighted financing rate also saw an increase. The chart below shows that DOGE's 8-hour open interest weighted financing rate rose to 0.025% on November 28, up from 0.0124% two days prior.
This indicates a high demand for bullish positions as DOGE's price rebounds during the same period.
According to CoinGlass data, although DOGE's open interest (OI) has retreated from the historic high of $3.77 billion set on November 23, it remains at a high of $3.25 billion.
Higher open interest indicates more funds are entering the market, increasing the likelihood of the upward trend continuing.
DOGE Price Shows V-Shaped Recovery
Since November 26, DOGE's price trend has been exhibiting a V-shaped recovery pattern on the four-hour chart, as shown below.
A V-shaped recovery is a bullish pattern formed when an asset's price experiences a sharp decline followed by a significant increase. The pattern completes when the price rises to the resistance level at the V-shaped top.
DOGE also appears to be on a similar trajectory. Currently, the trading price for the currency pair is above the critical demand zone between $0.3915 and $0.4050, with the 50-hour and 200-hour simple moving averages (SMA) also positioned within this range.
This suggests that increasing purchases from the current level could push DOGE's price to complete the V-shaped pattern at a trading price of $0.4806.
Conversely, a closing price below the 50-day moving average would indicate that bulls are unable to sustain the recovery. This would lead to a price pullback to the 100-day moving average of $0.915 seeking support.
