Analysts are betting on a high possibility of a price rally for the biggest meme coin in the cryptocurrency landscape, as market watchers see that Dogecoin is gaining momentum and may be ripe for a price explosion.
The data shows that optimism on the meme coin grew, fueled by an increase in the coin’s open interest and an ongoing price recovery that saw the token breach its resistance level.
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Dogecoin open interest reached $4.7 billion
Analysts believe that Dogecoin could potentially experience a rally that would see Meme Coin reach the $0.39 level, saying that the token is currently on a recovery mode and gaining momentum.
One of the positive indicators that point to a potential uptrend for DOGE is open interest. The data shows that open interest in the token has increased.
According to CoinGlass, open interest in Dogecoin has surged nearly 10% in the past 24 hours, allowing the meme coin to take a hit. $4.74 billion
Meanwhile, a crypto analyst noted that the long-to-short ratio of 0.9964 could show some high number of bearish positions. Still, the token is on the positive side in terms of volume-weighted funding rate which rose 0.0098% – an indicator that investors are willing to pay a premium to maintain their bullish positions.
Overall, analysts remain confident that derivative data points suggest that the upward momentum will continue for the largest meme coin.
Remaining above the Fibonacci support level
Crypto analysts noted that DOGE reached a price of $0.31385, which remains above its 23.62% Fibonacci support level. They highlighted that while DOGE initially faced strong bearish pressure, the token managed to recover and quickly gain momentum.
Market observers said the data indicated that the price of DOGE approached the 50% Fibonacci level, trading at $0.3675 and saw a series of consecutive bullish candles.
Dogecoin climbed above the 200 EMA line and reached the 38% Fibonacci level, driving the high probability of a positive crossover for the token.
Additionally, indicators highlighted that DOGE has reached its overbought range in its 4-hour RSI, supporting the possibility that the token will continue to rise.
As of press time, Dogecoin is happening It was traded at 0.3776 dollars With a total market capitalization of $55 billion. DOGE is up 3.1% and 15.8% in the daily and weekly frames, data from Coingecko shows.
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Is $0.39 within range?
Analysts suggested that many signs are showing that Dogecoin is gaining strength that could push it up to $0.39 per coin.
DOGE continues to dominate its share of the crypto landscape at around 50%, breaking through the psychological resistance level of $0.35.
Crypto observers noted a 5% increase in the altcoin market, another metric that could help Dogecoin in its upward trend.
Featured image from CyberNews, chart from TradingView
