Why Dogecoin price increased today?
Dogecoin (DOGE) continues to ride the wave of recovery along with the broader crypto market including memecoins due to many factors. Chief among them is the growing possibility of an interest rate cut in September.
Additionally, a possible pro-crypto stance under the leadership of Donald Trump – should he win the upcoming US presidential election – will further fuel market enthusiasm.
Reduce expectations, the Trump event has raised the price of DOGE
DOGE price increased by 5.75% in the last 24 hours and was trading at $0.13, the highest in one month.
Memecoin's upward trend began on July 13 after a report showed weaker-than-expected jobs growth in the US. This report saw a 25 basis point interest rate cut rise to 94% in September from 57.5% a month earlier.
Low interest rates are crazy for non-assets like cryptocurrencies, including today's gains which have seen DOGE prices up more than 40% since July 13th.
Doge's rally boosted his chances of winning the November election after the failed assassination attempt on former US President Donald Trump.
Trump's recent financial moves have fueled optimism among investors. As a result, the possibility of a return to office is considered a positive development for the crypto market, which contributed to a significant increase in the price of DOGE.
Related: Trump's VP pick, JD Vance, could mean a new era for crypto
On July 27, Trump will deliver a keynote address at the Bitcoin 2024 conference, where he may discuss plans for crypto-friendly regulations if re-elected. The crypto sector speculates that Trump will announce a Bitcoin strategic reserve policy, in which the US—like El Salvador—could transfer some of its cash or gold reserves to Bitcoin.
Dogecoin open interest rises to a two-week high.
Today's DOGE price gains are accompanied by a rise in the open interest (OI) futures market with continued positive funding rates.
Notably, the number of unadjusted DOGE futures contracts reached $603.10 million on July 20, the highest in two weeks. Meanwhile, DOGE futures funding rates were positive at 0.231% per week from -0.546% two weeks ago.
An increase in OI indicates an increase in demand and activity in the market. Positive financing rates indicate that traders are willing to pay a premium to hold long positions, indicating a more optimistic outlook on DOGE prices.
A rising DOGE price wedge abortion is underway.
Today's DOGE gain is part of a technical retracement that started after the price retested the lower rising wedge pattern. Interestingly, the lower trendline is in line with another key support identified by DOGE's 50-4H RB moving average (50-4H EMA, the red wave) at $0.12.
Ascending patterns are often characterized by two ascending and converging trends in reversal patterns. They are resolved after the price breaks below the lower trend line and the maximum distance between the higher and lower trend line decreases.
In the best-case scenario, DOGE price could continue to rise until it reaches the tip of the wedge—where two trends converge—at $0.14 in the days before Trump's keynote on July 27.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
