Dogecoin is poised for a potential massive rally in the coming weeks. Strong technical support and positive momentum in derivative markets suggest that DOGE could surprise investors. Let's delve into the key factors that could propel the memecoin to new highs.
The Dogecoin (DOGE) has just touched a significant technical level on the weekly chart, an ascending support line that could be a major catalyst for a price increase.
This level has been a significant trigger in the past, propelling the recent market high to $0.48. This time, the rally could range from $0.22 to $0.48 depending on market evolution.
If Dogecoin surpasses the $0.22 level, it could potentially move even higher. Particularly, the $0.38 level is a significant target as it holds a substantial liquidity volume in the market. Sustaining this upward momentum will be crucial for DOGE to reach this key milestone.
There is a growing interest in the derivatives market, with a gradual rise in the Weighted Funding Rate by Open Interest (OI) and the Weighted Funding Rate by volume.
At the time of writing, the volume in the overall market has surged by 16.12%, reaching $2.93 billion, while options volume has further increased by 87.59% in the last 24 hours.
The Weighted Funding Rate by volume, which combines market volume and Funding Rate, suggests a potential continuation of market growth in the days ahead. Likewise, the Weighted Funding Rate by Open Interest is also positive, showing the same reading of 0.0071%.
This indicates that outstanding contracts in the market are predominantly held by long traders, hinting at potential market bullish movement.
The recent rise in trading volume appears to be driven by spot traders, who have bought $8.9 million worth of DOGE. This follows several consecutive days of buying activity.
If buying volume in the spot market continues to rise in the coming days, the DOGE rally could gain significant traction. This momentum could accelerate its progress towards the targeted price objective.
With a weekly Stochastic RSI at its lowest, the rebound is nearly imminent. Although a bull run may take weeks or months to materialize, DOGE presents a promising opportunity for long-term investors.
In conclusion, Dogecoin is currently well-positioned for a major rally in the weeks ahead. With a crucial technical support level, an increase in interest and buying volume in the derivatives markets, along with positive momentum in the spot market, DOGE could surprise investors by reaching $0.22 and beyond. Traders, however, need to monitor the short-term market developments closely to fully capitalize on this opportunity.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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