Following a series of interesting price movements last week, Dogecoin is now looking for its price trajectory for the rest of the month. The value of the meme coin dropped from $0.2099 to $0.1689 last week, a drop of nearly 20% in a matter of days.
However, DOGE investors appear to be hoping for a different action this week as various on-chain indicators begin to suggest a reversal of bullish momentum over the weekend.
Dogecoin trading volume surges as price rises
Recently, Dogecoin's trading volume has soared as buying pressure has increased. According to Coinglass data, Dogecoin's trading volume in the derivatives market has increased by 31% in the past 24 hours to more than $4.61 billion. Meanwhile, data from Coinmarketcap shows that the spot market has increased by 13% in the past 24 hours to $2.83 billion.
With increased volume comes buying pressure, and DOGE has seen a lot of this. Interestingly, the increase in buying has pushed the DOGE price up by over 6% in the past 24 hours to $0.208. The number of DOGE long positions has also increased significantly, indicating that traders expect the price to continue climbing.
Open interest surges
Dogecoin open interest has grown by a healthy 10.15% to $1.74 billion over the past 24 hours, indicating that more traders are opening new DOGE positions. The increase in open interest suggests that Dogecoin’s bullish reversal from last week’s price drop may have enough momentum as traders anticipate further gains this week.
Most of the open interest ($574.95 million) comes from Binance. Bybit and Singapore’s BingX ranked second and third, with $449.44 million and $229.42 million, respectively.
Whale accumulation shows growing confidence in DOGE
On-chain data shows a recent accumulation trend for Dogecoin whales, with large amounts of Dogecoin leaving cryptocurrency exchanges over the weekend. For example, Whale Alerts recently noticed that 304 million Dogecoins worth $52.3 million were transferred from cryptocurrency exchange Binance to three private wallets.
DOGE to $0.3?
As of this writing, DOGE bottomed out around $0.16 last week and is currently trading at $0.2076. Interestingly, the increase in the aforementioned metric coincided with DOGE’s attempt to break through the $0.20 resistance level over the weekend.
Now that the cryptocurrency has broken above $0.20, the next target for bulls is $0.22. If DOGE can close above $0.22 and sustain at that level, many investors expect it to continue climbing to $0.30 and above.
According to the prediction, the recent price action has seen the return of a bullish fractal for DOGE. If history repeats itself, the bullish fractal could cause DOGE to surge to $12.
