Dogecoin price pops as volume and open interest surge

Dogecoin Surges on Investor Interest in Meme Coins

Dogecoin (DOGE), the dominant meme coin, rallied to $0.1283, its highest since September 29th. This surge marks its entry into a bullish market after a 56% rise from its August lows.

The rally was accompanied by significant trading volume, with CoinGecko data indicating a 24-hour volume of $2.25 billion, the highest in over two weeks. Similarly, the futures market witnessed increased open interest, reaching a peak of $768 million since June 19th. Elevated open interest often signals growing demand for a cryptocurrency.

Dogecoin's uptrend mirrored that of other meme coins, which have performed strongly in recent weeks. Bonk (BONK) gained 14.2% over the past week, while Brett, Neiro, and Cat in a Dog's World surged by over 20% during the same period.

Moreover, the broader cryptocurrency market rebounded, with Bitcoin crossing the $68,000 resistance level for the first time in several weeks. Investors are also returning to Bitcoin, with spot ETFs recording $371 million in inflows on October 16th.

Some analysts speculate that Dogecoin's rise follows Tesla's transfer of $225 million worth of Bitcoin to unknown wallets. Elon Musk's previous support for Dogecoin suggests this could be a potential catalyst.

Dogecoin Approaches Key Resistance

DOGE has rallied for three consecutive days and now trades at its highest level since September 30th. It has broken above the 50-day and 200-day Weighted Moving Averages, setting the stage for a potential golden cross pattern. When this cross last occurred in November, Dogecoin surged by over 53%.

Additionally, Dogecoin has moved above the ascending trendline connecting its lowest points since August.

Further gains are likely if DOGE can surmount the crucial resistance point at $0.1318, its September 28th high. A successful break above this level could lead to a rally towards $0.1440, its peak on June 21st.