Will Dogecoin ‘Candle of the Gods’ Come? The price of DOGE increased by 10%
Dogecoin, the largest memecoin by market capitalization, rallied more than 10% in the last 24 hours as memecoins recovered across the board.
Currently trading at $0.1262, the price of Dogecoin (DOGE) has reached its highest price since September 29, which represents a 44% rise from the September 6 low of $0.08888.
DOGE/USD Daily Chart. Source: TradingView
Trading activity also increased in line with the increase in DOGE prices. DOGE spot trading volume increased to $1.8 billion on October 16, up 95% over the past 24 hours and 165% over the past seven days.
According to data from CoinMarketCap, its market capitalization has returned to the $18 billion mark, confirming its position as the largest memecoin.
It is also the most sold memecoin on October 16, surpassing PEPE by $600 million in volume.
What is behind DOGE's latest bully activity?
The price of DOGE is looking to stop the downward trend of several months
Several crypto traders have said that they expect Dogecoin to build on its current momentum to begin a sustained recovery.
“Doge is ready to run,” pseudonymous altcoin analyst Alstreet Bets wrote on X on October 16.
Crypto technical analyst Mikbul Crypto has shared a chart showing the price of DOGE breaking above its 180-day downtrend, with $0.13 and $0.14 being key resistance levels to watch at the time of writing:
“Looks like God's candle is coming.”
The multi-month downtrend line at $0.1047 is acting as immediate support for memecoin. The Moving Average Convergence Divergence (MACD) indicator has now produced a bullish signal.
This happens when the MACD line (blue) crosses above the signal line (orange) and the market trend reverses to the upside.
DOGE/USD Weekly Chart. Source: TradingView
It is worth noting that DOGE's recent rally has seen it flipping into support at key levels, including the 50-week and 100-week simple averages (SMAs) at $0.1196 and $0.970. Increased buying from these bullish congestion zones could push the price of DOGE to the March 18 high of $0.2286.
Meanwhile, futures traders are skeptical of a quick rebound, $587,344 in short positions if the price recovers to $0.130, where the 200-day SMA currently sits. A 10% discount to $0.114 would cost 1.73 million in long positions.
DOGE Exchange Fluid Temperature Map. Source: CoinGlass
Related: Grayscale puts DOGE, Worldcoin on list of 35 potential crypto products
The increase in OI supports the recovery of DOGE
The rise in Dogecoin price on October 14 comes after a significant increase in open interest (OI).
Open demand is a key metric that traders and analysts use to assess market sentiment and predict future price movements.
DOGE's OI rose to $755.5 million on Oct. 16, up about 27.3 percent from $593.7 million recorded a day earlier, according to CoinGlass data.
DOGE Open interest on all exchanges. Source: CoinGlass
Additional data from CoinGlass shows that the demand for long positions used in DOGE has been increasing over the past few days with the amount of perpetual futures funding.
DOGE Average perpetual contracts 8-hour funding rate. Source: CoinGlass
Note that the current eight-hour rate of 0.0102% translates to a cost of 0.2142% over a seven-day period, which is useful for traders building futures positions. Typically, when volatility is driven by excessive optimism, the rate can easily exceed 1% per week over the next few days.
This indicated continued bullish sentiment, with traders willing to pay more to maintain long positions, ultimately pushing DOGE prices higher.
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.
