Dogecoin (DOGE) has gained more than 3.5% over the past 24 hours to $0.4075, in line with the recovery across the broader cryptocurrency market, which is up about 3.3% over the same period to hit $3.32 trillion. Data from Cointelegraph Markets Pro and TradingView shows that DOGE has seen strong volatility over the past two weeks, fluctuating between $0.35 and $0.45.
Although DOGE is currently trading 15% below its multi-year high of $0.4808 on November 23, there are still several factors supporting the bullish potential of the world's largest memecoin.
DOGE Rises Along With Other Memecoins
The bullish sentiment isn't limited to Dogecoin, as cryptocurrency prices are also rising across the memecoin sector as a whole, fueled by Bitcoin's recovery above $95,000.
Shiba Inu ( SHIB ), the second largest memecoin by market capitalization, has followed in DOGE's footsteps and has increased by 3.6% over the past 24 hours to trade at $0.00002554. Pepe ( PEPE ), the Eethereum-based memecoin, has increased by more than 6.5% over the past 24 hours to trade above $0.0000197.
Other large-cap memecoins, including Solana-based Bonk (BONK) and Dogwifhat (WIF), have also seen modest gains over the past 24 hours. Likewise, the total memecoin market cap has increased by 5% over the past 24 hours and 94% month-to-date, reaching $115 billion at the time of publication.
Meanwhile, weekly memecoin transaction volume across all blockchains, including Ethereum and Solana, increased to a total of $391 million in the week ending November 22, up 157% from $152 million in the first week of November, according to Dune data. The total transaction volume of all memecoins is approaching the $55 million mark and stood at $54.75 billion at the time of publication.
DOGE Funding Rate Spikes
DOGE’s bullish price action on November 28 was preceded by a spike in its open interest-weighted funding rate. The chart below shows that DOGE’s 8-hour OI-weighted funding rate rose to 0.025% on November 28, up from 0.0124% seen two days prior. This suggests high buying demand as DOGE’s price rallied during the same period.
According to CoinGlass data, DOGE’s open interest (OI) remains high at $3.25 billion, although it is down from its all-time high of $3.77 billion recorded on November 23.
Higher open interest shows that more money is pouring into the market, increasing the likelihood that the uptrend will continue.
DOGE Price Nurtures V-Shaped Recovery
DOGE’s price action since November 26 has nurtured a V-shaped recovery chart pattern on the four-hour chart, as shown below.
A V-shaped recovery is a bullish pattern that forms when an asset experiences a sharp increase in price after a sharp decline. The pattern is complete when the price rises to the resistance level at the top of the V-shaped pattern.
DOGE appears to be following a similar trajectory. It is currently trading above a key demand zone between $0.3915 and $0.4050, where the 50-four-hour and 200-four-hour simple moving averages (SMA) are currently located.
This suggests that increased buying from current levels is likely to push DOGE price to complete the V-shaped pattern to trade at $0.4806.
Conversely, a close below the 50-day SMA would indicate that the bulls are unable to sustain the recovery. This would send the price lower to seek support from the 100-day SMA at $0.915. This article does not contain investment advice or recommendations. Any investment and trading move involves risk and readers should conduct their own research before making a decision.
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