TLDR:
Dogecoin broke above $0.36, achieving a 13% gain in 24 hours and outperforming other meme coins like SHIB and PEPE
Open interest in DOGE futures surged by $570 million in three days, reaching a total of $3.81 billion, indicating strong speculative interest
Technical indicators show bullish momentum with potential resistance at $0.40 and support at $0.3550
Trading volume and institutional buying pressure have increased, with the price staying above the Volume-Weighted Average Price of $0.3516
Market sentiment appears positive ahead of Trump’s upcoming inauguration, with traders betting on potential market volatility
Dogecoin (DOGE) has demonstrated renewed strength in the crypto market, breaking through the $0.36 price level on Tuesday. The popular meme cryptocurrency recorded a 13% increase within 24 hours, outpacing its competitors Shiba Inu (SHIB) and PEPE in the process.
The upward movement began as DOGE cleared several key resistance levels, including $0.3420 and $0.350. Technical analysis reveals that the cryptocurrency successfully broke above a bearish trend line that had previously served as resistance at $0.3350 on the hourly chart.
Trading data from Kraken shows that Dogecoin has maintained its position above both the $0.350 mark and the 100-hourly simple moving average. This technical achievement suggests a strengthening of the current bullish trend.
Dogecoin
DOGE Price
The surge in price has been accompanied by a substantial increase in futures market activity. Open interest in Dogecoin futures contracts has grown by $570 million over just three days, bringing the total to $3.81 billion as of January 14, according to data from Coinglass.
Market analysts note that the 15% rise in open interest has outpaced the 10% gains observed in DOGE’s spot prices. This disparity indicates that leveraged traders are maintaining their positions rather than taking immediate profits, suggesting confidence in further upward momentum.
The Volume-Weighted Average Price (VWAP) currently stands at $0.3516, with Dogecoin trading above this level. This technical indicator points to increased buying support and potential institutional interest in the asset.
Looking at immediate price levels, DOGE faces resistance near $0.3650, with a major hurdle at $0.3720. Should the cryptocurrency maintain its current trajectory, the next target for bulls appears to be the $0.380 level, followed by potential resistance at $0.3920.
Support levels have established themselves at $0.3550 and $0.3460, with a main support zone at $0.3380. Technical indicators show the MACD gaining momentum in the bullish zone, while the Relative Strength Index (RSI) remains above the 50 level.
The Keltner Channel’s upper band at $0.4007 represents a key resistance level that traders are watching closely. A breakthrough above this point could potentially trigger a move toward the $0.45 mark, particularly if the current leverage positions continue to build.
The Accumulation/Distribution Line (ADL) reading of 1,573 suggests steady capital inflows, supporting the possibility of continued upward movement. However, market observers note that failure to maintain prices above $0.35 could lead to profit-taking or forced liquidations of leveraged positions.
Recent trading patterns show that DOGE successfully surpassed the 76.4% Fibonacci retracement level of the downward move from $0.3478 to $0.3096. The cryptocurrency is also trading above the 1.236 Fibonacci extension level of this same price movement.
If the current price fails to break above $0.3650, analysts suggest the possibility of a retracement. In such a scenario, the price might test lower support levels, potentially reaching $0.3120 or even $0.3080 in the near term.
Trading volume data indicates increased market participation, with new long positions totaling $570 million being added in recent days. This surge in trading activity suggests growing interest from both retail and institutional investors.
The most recent data shows Dogecoin trading steadily above key moving averages, maintaining its position despite normal market fluctuations. This stability above crucial technical levels provides a foundation for potential further price appreciation.
The post Dogecoin (DOGE) Price: Roars Back & Records 13% Daily Gain, What’s Next? appeared first on Blockonomi.