Dogecoin 'god candle' coming? DOGE price suddenly jumps 10%

Dogecoin (DOGE) Rallies Over 10% Amidst Memecoin Recovery

Dogecoin (DOGE), the leading memecoin by market capitalization, has witnessed a significant surge of over 10% in the past 24 hours as memecoins experience a broader recovery.

Currently trading at $0.1262, DOGE's price has reached its highest point since September 29th, marking a remarkable 44% increase from its local low of $0.08888 on September 6th.

Trading activity has also climbed alongside DOGE's price surge. Spot trading volumes for DOGE surpassed $1.8 billion on October 16th, an impressive 95% and 165% increase over the past 24 hours and seven days, respectively.

According to CoinMarketCap data, its market capitalization has reclaimed the $18 billion mark, solidifying its position as the world's largest memecoin. Notably, DOGE remains the most actively traded memecoin on October 16th, outperforming Pepe (PEPE) by over $600 million in volume.

Factors Driving DOGE's Bullish Momentum

Several crypto traders anticipate that DOGE will capitalize on its current momentum to initiate a sustained recovery. Alstreet Bets, an anonymous altcoin analyst, expressed optimism on October 16th, stating "Doge is ready to run."

Crypto technical analyst Mikybull Crypto shared a chart indicating DOGE's price breaking above a 180-day descending trendline, identifying $0.13 and $0.14 as key resistance levels to monitor.

The multi-month descending trend line at $0.1047 provides immediate support for the memecoin, while the moving average convergence divergence (MACD) indicator recently generated a bullish signal. This signal emerged when the MACD line (blue) crossed above the signal line (orange), suggesting a shift in market conditions favoring upward movement.

It's noteworthy that DOGE's recent rally has converted critical levels into support, including the 50-week and 100-week simple moving averages (SMAs) at $0.1196 and $0.970, respectively. Increased buying from these areas will likely propel DOGE's price towards the March 18th high of $0.2286.

However, futures traders remain cautious about a rapid rebound, with $587,344 in short positions vulnerable if the price recovers to $0.130, the current position of the 200-day SMA. A further 10% decline to $0.114 would result in the liquidation of $1.73 million in long positions.

Rising Open Interest Supports DOGE's Recovery

The spike in DOGE's price on October 14th coincides with a sharp increase in its open interest (OI). OI, a crucial metric for assessing market sentiment and anticipating future price movements, rose to $755.5 million on October 16th, a 27.3% increase from $593.7 million the previous day.

Data from CoinGlass also reveals a growing demand for leveraged long positions in DOGE over the past few days, reflected in the perpetual futures funding rate. The current 0.0102% eight-hour rate equates to a 0.2142% cost over seven days, which is significant for traders holding futures positions.

This indicates sustained bullish sentiment, with traders willing to pay a premium to maintain long positions, thereby driving DOGE's price higher.

Disclaimer: This article does not provide investment advice or recommendations. All investments and trading activities involve risk, and readers should conduct thorough research before making any decisions.