Baby Doge Coin surged over 49% amid increasing demand from futures traders and an increased interest from whales.
The meme coin pumped from an intraday low of $0.000000004109 to as high as $0.000000006077 on Dec. 9 to levels not seen since January 2022, outpacing the broader crypto market, which has fallen 3.6% over the past day.
Baby Doge Coin’s (BABYDOGE) daily trading volume hovered around $475 million, with its market cap at $967 million, falling just short of reaching the $1 billion mark once again.
Why is Baby Doge Coin rising?
The meme coin rallied amid a surge in demand from futures traders. According to data from CoinGlass, the open interest in its futures market has jumped 44% over the previous day to over $104 million when writing.
PEPE price and large holders net flows – Dec. 8 | Source: IntoTheBlock
Further fueling the altcoin’s gains is the increasing interest from whale holders who have recently begun accumulating the token. According to data provided by IntoTheBlock, the BABYDOGE large holder net flows shifted from a net outflow of 1.22 trillion BABYDOGE on Dec. 5 to a net inflow of 10.21 trillion BABYDOGE on Sunday, Dec. 8.
Additionally, the total number of BabyDoge holders has risen by 15% since Nov. 15, according to CoinCarp, contributing to improved liquidity and a stronger community base.
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BABYDOGE’s recent rally got a significant boost after Tesla CEO Elon Musk made a cryptic tweet where he shared a photo of himself and his son with the words “Doge & Minidoge.” While this had no direct mentions of BABAYDOGE, the meme coin’s community reacted with a 75% rally right after the post surfaced.
The recent hype surrounding the meme coin has spotlighted it as a top trending coin on CoinGecko.
Technical indicators remain bullish for BABYDOGE and point to a high likelihood of the meme coin reaching a new all-time high soon, which is a little over 6% away at press time.
BABYDOGE price, Bollinger Bands and MACD chart — Dec. 9 | Source: crypto.news
On the 1-day/USDT price chart, the meme coin’s price has moved above the upper Bollinger Band, suggesting buying pressure continues to remain strong as bulls remain in control.
Further, the Moving Average Convergence Divergence indicator shows that the MACD line is moving higher over the signal line, confirming the strength behind the bullish trend, which could potentially extend the meme coin’s rally.
BABYDOGE PPO and RSI chart — Dec. 9 | Source: crypto.news
Also, the Percentage Price Oscillator index has pointed upwards — a sign of continuing momentum, even though the Relative Strength Index has been above 100 for some time. While an RSI above 100 typically signals overbought conditions, the strong buying pressure from investors appears to be overriding traditional market cooldown signals.
Considering these signals, BABYDOGE could potentially rally to its all-time high of $0.000000006345, which currently serves as a key resistance level. A break above this could pave the way for the token to test its next potential psychological resistance at $0.0000000065.
At press time, the meme coin was trading at $0.000000006045.
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