Dogecoin (DOGE) Poised for Major Price Rally
After experiencing a downtrend for nearly six months, Dogecoin (DOGE), the leading meme coin, is now on the verge of a significant price rally. On September 13, 2024, DOGE witnessed an impressive surge, breaking out of its long-standing descending trendline.
This breakout is further validated by various on-chain metrics such as future open interest, long/short ratio, and OI-weighted funding rate, all of which signal a bullish market sentiment.
DOGE Price Momentum
As of the latest update, DOGE is trading close to $0.1053, marking a notable increase of over 4.5% within the past 24 hours. Moreover, the trading volume for DOGE has surged by 23% in the same timeframe, indicating heightened engagement from traders and investors in the wake of the breakout.
Dogecoin (DOGE) Technical Analysis and Upcoming Levels
Expert technical analysis suggests that DOGE retains a bullish outlook despite trading below the 200 Exponential Moving Average (EMA) on the daily chart. The breakout from the descending trendline is complemented by the Relative Strength Index (RSI) breaking out from a symmetrical triangle pattern on the daily chart, further indicating bullish momentum.
Historical price patterns indicate that if DOGE successfully closes a daily candle above the $0.106 level, it could potentially rally by 20% to reach the $0.128 level in the upcoming days. However, this bullish scenario is contingent on DOGE closing the daily candle above the $0.106 threshold. Failure to do so might invalidate this bullish projection.
DOGE’s Bullish Key Metrics
The bullish outlook for DOGE is further reinforced by its on-chain metrics. According to Coinglass, the current long/short ratio stands at 1.051, indicating a bullish sentiment among traders. Presently, 51.25% of top DOGE traders hold long positions, while 48.75% maintain short positions.
Additionally, DOGE’s future open interest has grown by 9.2% in the last 24 hours and has been on an upward trajectory since September 8, 2024. The combination of increasing open interest and a long/short ratio above 1 suggests potential buying opportunities, which traders and investors often consider when forming long or short positions.
Furthermore, DOGE’s OI-weighted funding rate is currently at 0.0067% and remains positive, signaling bullish market sentiment. Generally, a positive OI-weighted funding rate is seen as a bullish indicator, whereas a negative rate suggests a bearish trend.
