Dogecoin Price Trends and Market Predictions

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Dogecoin’s (DOGE) price rebounded from its early May low of $0.12, showing noticeable recovery. Although DOGE remains below the $0.16 level, it could soon surpass this threshold.

Will Dogecoin’s Price Rise?

Dogecoin’s price appears to be trending upwards as investors begin to take long positions, resulting in a nearly $200 million increase in open interest over two days.

Open interest briefly represents the total number of outstanding derivative contracts at a given time, offering a forecast of market activity.

It also reflects the total volume of active positions and indicates market sentiment and liquidity status.

The increase in open interest can also be linked to a rise in short positions. However, considering the positive funding rate, the increase seems to be driven by long positions.

A rise in DOGE’s price could be imminent as recent recovery trends continue to be a topic among investors. It is also known that 83% of the total circulating DOGE supply is in a profitable position.

In the market, a higher profitability rate might indicate potential sales, typically occurring at market peaks. However, Dogecoin currently appears far from any peak.

For DOGE to reach such a point, a scenario where 95% of the supply is profitable would need to emerge.

What Will Dogecoin’s Price Be?

Dogecoin’s price is once again facing the $0.16 resistance level, which has been tested multiple times in the past. If this level is breached and becomes support, DOGE’s price could rise to $0.18.

Surpassing this resistance could trigger a 25% rally, potentially compensating for recent losses.

Conversely, if this resistance fails to break, Dogecoin’s price could fall to $0.15. Losing this support could drop the meme coin to $0.12, invalidating any bullish scenarios.

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