Dogecoin (DOGE), the largest meme coin by market capitalization, surged over 6% in the last 24 hours, currently trading at $0.1243. This highlights a recovery for the cryptocurrency, as it has reached its highest value since September 29, 2024. The recent spike represents a rebound from its local low of $0.0890, hit on September 6, with a 38.88% increase in its price since that period.
Spike in Trading Activity
A sharp rise in trading volume has accompanied the increase in Dogecoin’s price. Spot trading volumes for the token rocketed to $2.29 billion on October 17, showing a 71.42% increase over the previous 24 hours. This spike in trading activity has propelled the altcoin’s market capitalization back above the $18 billion mark, solidifying its position as the largest meme coin by market value.
Compared to other meme coins, the cryptocurrency maintained a clear lead on October 17, outperforming rival tokens such as Pepe (PEPE). For instance, the token’s trading volume surpassed Pepe’s by over $1.365 billion, emphasizing its dominance in the meme coin sector.
One of the primary drivers behind the token’s recent price rally is its correlation with Bitcoin (BTC). As observed on CoinMarketCap, Bitcoin’s climb beyond the $68k mark has had a ripple effect throughout the cryptocurrency market, influencing other altcoins like Dogecoin.
Consequently, market analysts are watching closely as Bitcoin approaches the $70,000 threshold, which hasn’t crossed since early June 2023. Should Bitcoin continue its upward momentum, Dogecoin is expected to follow a similar trajectory, with the $0.14 resistance level being a key threshold that traders are keeping an eye on.
DOGE’s Multimonth Downtrend Shows Signs of Reversal
Several analysts have highlighted that Dogecoin’s price movements are breaking from a multi-month downtrend. One such example is analyst Mikybull Crypto, who pointed out that the DOGE price recently broke above a 180-day descending trendline, indicating the possibility for further gains.
$DOGE
It looks like god candle is coming.
Deja vu indeed pic.twitter.com/bbtjkDTYBm
— Mikybull 🐂Crypto (@MikybullCrypto) October 16, 2024
Similarly, Alstreet Bets, a pseudonymous altcoin analyst, also shared an optimistic outlook for Dogecoin, stating in an October 16 post that the token is “ready to run.” With resistance levels at $0.13 and $0.14, traders are monitoring these key points for signs of a continued rally. On the same accord, the MACD indicator cements the bullish signals, suggesting market conditions are increasingly favorable for te cryptocurrency.
These sentiments are backed by data showing that Dogecoin has flipped crucial support levels, including the 50-week and 100-week SMAs at $0.1073 and $0.1102, respectively. The bullish momentum could push DOGE higher, with traders eyeing the March 28 high of $0.2290 as the next major target.
Open Interest (OI) Rises, Backing Dogecoin’s Recovery
Another factor supporting Dogecoin’s recent recovery is the sharp rise in its open interest (OI). On October 17, Dogecoin’s OI surged to $784.22 million, representing a 32.95% increase from the previous day’s $593.7 million. Dogecoin’s perpetual futures funding rate has also shown an uptick in demand for long positions.
As observed on CoinGlass, the average eight-hour funding rate stood at 0.0102%, translating to a 0.2142% cost over seven days. This suggests that traders are willing to pay a premium to maintain their positions, reflecting optimism around Dogecoin’s price trajectory.
