With the cryptocurrency market rebounding, Dogecoin [DOGE] is capitalizing on the positive momentum. In the last two weeks, this widely known memecoin has experienced an 8% uptick, followed by an additional 2.1% increase in the past 24 hours.
Currently, DOGE is trading at $0.1065, hinting at a potential breakout in the near future.
Factors Driving Dogecoin’s Upward Trend
During this surge, well-known crypto analyst Ali has highlighted two crucial factors that could indicate a continuation of the bullish trend for DOGE. Ali recently shared insights, suggesting traders keep an eye on two specific developments: the Relative Strength Index (RSI) breaking its downward trendline on the daily chart and surpassing the key resistance level of $0.11.
The RSI, a momentum indicator, typically identifies overbought or oversold conditions. A breach above the descending trendline signifies growing buying pressure, implying a potential sustained rally for DOGE.
Furthermore, surpassing the $0.11 resistance level would mark a clear bullish breakout, potentially triggering further price hikes. Monitoring these signals is pivotal in assessing DOGE’s upcoming price action.
Strengthening Fundamentals
Besides the price movement, Dogecoin’s fundamentals are also exhibiting robustness. At present, the Open Interest, representing the cumulative number of active futures and options contracts, has surged by 5.20% to $506.41 million, indicating heightened trader participation.
Conversely, the Open Interest volume, measuring the total contract volumes traded within a specific period, has decreased by 2.26%, resting at $986.60 million presently.
The contrast between the rising Open Interest and the declining volume suggests cautious optimism among traders, potentially awaiting additional confirmation of the bullish trend before committing larger volumes. This behavior hints at a potential significant move for DOGE, contingent upon market responses.
Another positive sign originates from whale activity, involving substantial transactions usually valued above $100,000.
Recent data from IntoTheBlock revealed a noticeable uptick in whale transactions for Dogecoin. Following a minor drop below 600 transactions last week, the count has surged to nearly 1,000.
Such an uptick in whale activity often indicates heightened interest from institutional or high-net-worth investors, contributing additional liquidity and upward price pressure. The increased whale transactions suggest significant players are amassing DOGE, potentially anticipating further price escalations in the near term.