Dogecoin (DOGE) has recently hit a key support level on the weekly chart, indicating that a significant move could be on the horizon. The coin’s volume, sentiment, and large purchases of DOGE all point towards a bullish outlook. Despite a recent drop in the past 24 hours, this could actually benefit the asset and pave the way for a continued uptrend similar to the 18% gain observed in the past week. To push DOGE higher, traders in both the spot and derivative markets will need to work together.
The key support level that DOGE has reached on the chart is known as the ascending support line, which has historically been a major price catalyst. This level has previously led to a market high of $0.48, and the potential rally this time could range from $0.22 to $0.48 depending on market movements. Surpassing the $0.22 level could potentially propel DOGE further, with the $0.38 level representing a significant target due to liquidity clusters in the market. Maintaining upward momentum will be crucial in achieving this milestone.
Interest in the derivatives market has been increasing, as evidenced by rising Open Interest (OI)-weighted Funding Rate and Volume-Weighted Funding Rate. Market volume has surged to $2.93 billion, with option volume climbing by 87.59% in the past 24 hours. The Volume-Weighted Funding Rate stands at 0.0071%, suggesting potential market growth in the days ahead. Similarly, the Open Interest-Weighted Funding Rate is positive, indicating a possible upward movement fueled by long traders holding unsettled contracts in the market.
Spot market momentum has also been on the rise, with spot traders purchasing $8.9 million worth of DOGE following several days of buying activity. This influx of buying volume could contribute to a significant gain in the DOGE rally if it continues to increase in the coming days. The Long-Short Liquidation Ratio shows a higher number of sellers incurring losses compared to long traders, indicating increased buyer activity and potential price surge in the market.
Overall, the convergence of key support levels, growing interest in the derivatives market, and rising spot market momentum suggest a bullish outlook for Dogecoin. With the support of spot and derivative market traders, DOGE could see a substantial price jump in the near future. Maintaining upward momentum and surpassing key resistance levels will be crucial in sustaining this potential rally. As buying interest and volume continue to rise, the stage is set for DOGE to make a significant move to the upside, potentially reaching new highs in the market.
