Why is Dogecoin (DOGE) price up today?

Dogecoin (DOGE), the largest by market capitalization, is leading a recovery in memecoins just days before the inauguration of US President-elect Donald Trump.

Currently trading at $0.40549, DOGE has reached its highest price since mid-December 2024, rising 10% in the last 24 hours and showing a 22% gain in the past week.

Let's take a closer look at the reasons behind the DOGE price increase today.

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DOGE will rise along with other memecoins

The bullishness wasn't limited to Dogecoin as crypto prices also rallied across the broader memecoin sector, following Bitcoin's recovery above $100,000.

Shiba Inu (SHIB), the second largest memecoin by market capitalization, followed in DOGE's footsteps and jumped 9.5% in the last 24 hours to trade at $0.00002418. Pepe (PEPE), an Ethereum-based memecoin, has rallied more than 5.5% in the last 24 hours to trade at $0.00001944.

Other high-profile memecoins, including Solana-based Bonk (BONK) and Dogwifhat (WIF), have posted significant gains over the past 24 hours. Fartcoin (FARTCOIN) is up 17% in the last 24 hours to trade at $1.45.

At the same time, the total memecoin market value has increased by 8.6% in the last 24 hours and by 22% in seven days, to rest at 115 billion dollars at the time of publication.

A rise in memecoin prices on January 17 led to an increase in open interest (OI), with Fartcoin leading the charge, showing a 30% increase in OI over the past 24 hours.

Open interest refers to the total amount of pending derivative contracts that have not yet been completed. In a futures contract, for each seller, the buyer is required to settle the contract.

DOGE's OI jumped over 9% on the hour and 22% on the day to an all-time high of $5.4 billion, roughly 10 times PEPE's $547 million in OI, up 14% over the same period.

An increase in OI for memecoins typically occurs when traders open more positions, assuming that the trend will continue, indicating high momentum in the market.

Note that Dogecoin last experienced such a large increase in OI in December 2024, when the price hit a four-year high of $0.48.

The DOGE bull flag points to new all-time highs

Meanwhile, the DOGE price technicians are showing the formation of a bullish flag pattern on the weekly time frame as shown below.

A bullish flag is a bullish continuation setup that occurs after the price consolidates following a higher breakout.

The pattern resolved after the price broke the flag's upper trendline at $0.39 on January 17. If DOGE closes above this level, it could rise from the previous high to a flagging technical target of $1.75. Marking new all-time highs for memecoin.

The DOGE daily relative strength index is still below the overbought threshold (70) at 65. This means that the higher the speed, the higher the probability of higher movement.

Crypto analyst Wealthybrains.sol has made similar observations on DOGE price action since mid-December 2024.

After setting a high of 0.50 in the area, DOGE “had another attempt to lose at 0.30,” he said in a post on X on January 17.

“Now, up to $1 ready for the next leg.”

DOGE is “showing optimism with key support around $0.35,” said Gemxbt.

“RSI and MACD indicate high momentum, and rising volume confirms this trend.”

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.