Will Dogecoin Surge to $0.39 as Open Interest Soars Past $4 Billion?
Will Dogecoin (DOGE) sustain its recent breakout rally and see a significant upward surge this week?
The altcoin market has witnessed a notable 5% recovery, with Dogecoin breaking through its psychological resistance level of $0.35. This pushed its market capitalization to $53 billion. As the leading meme cryptocurrency, Dogecoin holds a near 50% dominance in its niche. Can this upward momentum drive it past the $0.40 threshold?
Dogecoin Price Analysis
Despite facing strong bearish pressure earlier in the week, Dogecoin remains above its 23.62% Fibonacci support level at $0.31385.
The predicted double-bottom reversal mentioned in prior analysis has helped DOGE regain bullish momentum. With bullish divergence in the RSI, Dogecoin’s price has climbed near the 50% Fibonacci level at $0.3675. As of now, DOGE is trading at $0.3625, forming a series of consecutive bullish candles.
The likelihood of bullish crossovers has risen significantly as DOGE surpassed the 200 EMA line and the 38.20% Fibonacci level at $0.34356. Additionally, the 4-hour RSI has entered the overbought zone, further supporting potential upward movement.
Rising Optimism Around Dogecoin
As Dogecoin’s rally strengthens, the coin has seen a 10.83% increase in open interest within the last 24 hours, now totaling $4.39 billion.
Although the long-to-short ratio of 0.9964 indicates slightly more bearish positions, the volume-weighted funding rate for DOGE has surged to 0.0098%. This suggests traders are paying a premium to sustain bullish bets.
Derivatives data, including rising open interest, increasing funding rates, and an improving long-to-short ratio, supports the potential for a continued uptrend.
Key DOGE Price Levels to Watch
The ongoing breakout above the neckline at $0.34356 is gaining traction, suggesting a sustained bullish trajectory. Dogecoin has risen 5.26% in the last 24 hours, maintaining its upward momentum.
If bullish sentiment persists, DOGE could target $0.39159 at the 61.80% Fibonacci level. However, a market slowdown might prompt a retest of the 38.20% Fibonacci level at $0.34356.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. The opinions expressed are those of the author and do not reflect the views of News Hotcoin. Readers are encouraged to conduct their own research before making investment decisions. News Hotcoin is not responsible for financial losses.
