According to Cointelegraph: Dogecoin (DOGE), the largest memecoin by market capitalization, has experienced a notable 10% price surge in the past 24 hours, fueled by increasing trading activity and bullish sentiment among traders. Currently trading at $0.1262, DOGE has rallied 44% from its local low of $0.08888 on September 6, reaching its highest value since late September.
DOGE Trading Volumes and Market Cap Soar
Trading volumes have skyrocketed alongside the price surge, with DOGE's spot trading volume exceeding $1.8 billion on October 16, a 95% increase over the past day and a 165% rise over the past week.
DOGE/USD daily chart. Source: TradingView
DOGE’s market capitalization has also reclaimed the $18 billion mark, reaffirming its status as the top memecoin in the market, according to CoinMarketCap data.
DOGE was the most traded memecoin on October 16, surpassing Pepe (PEPE) by over $600 million in trading volume.
Key Factors Driving DOGE's Bullish Momentum
Several traders have expressed optimism about Dogecoin’s potential for continued growth. Technical analysis suggests that DOGE may break out of a multimonth downtrend. Pseudonymous crypto trader "Alstreet Bets" posted on X that "Doge is ready to run," while technical analyst "Mikybull Crypto" noted that DOGE has broken above a 180-day descending trendline. Key resistance levels to watch are $0.13 and $0.14, with some speculating that a "god candle" — a large bullish candlestick — could be on the horizon.
DOGE/USD weekly chart. Source: TradingView
DOGE's moving average convergence divergence (MACD) indicator has produced a bullish signal, with the MACD line crossing above the signal line, suggesting that market conditions have flipped in favor of further upside.
DOGE Eyes Higher Support Levels
Dogecoin's latest rally has seen it flip crucial support levels, including the 50-week and 100-week simple moving averages (SMAs) at $0.1196 and $0.0970, respectively. Increased buying pressure from these support zones could push DOGE higher toward the March 2023 high of $0.2286.
Meanwhile, futures traders remain cautious, as $587,344 in short positions could be liquidated if DOGE reaches $0.130. Conversely, a 10% price drop to $0.114 could trigger liquidations of long positions worth $1.73 million, according to data from CoinGlass.
Rising Open Interest and Bullish Sentiment
DOGE's rally has been supported by rising open interest (OI) in its futures market. OI for Dogecoin surged to $755.5 million on October 16, up 27.3% from the previous day's $593.7 million. This increase in OI reflects growing market interest and could signal further price volatility.
Additionally, the perpetual futures funding rate for DOGE has shown increased demand for leveraged long positions. The current eight-hour funding rate sits at 0.0102%, equivalent to 0.2142% over seven days, indicating traders are willing to pay more to maintain long positions. Sustained bullish sentiment could push prices even higher in the coming days.
As Dogecoin breaks critical resistance levels and trading momentum builds, all eyes are on whether DOGE will continue its rally toward the $0.13-$0.14 range and potentially beyond.
