Dogecoin price set out on an unexpected rally this week following Elon Musk’s decision to rebrand the leading microblogging platform to X from its well-known Twitter brand. The billionaire said that X will extend its service scope to include digital payments, think of it as China’s WeChat.
The meme coin cryptocurrency has in the last two weeks gained 25% to trade at $0.078 on Tuesday amid growing speculation that X may adopt DOGE as the token that powers payments.
As shared by the head of research and strategy at Matrixport, Markus Thielen, “As crypto is entering the summer lull that we initially expected for August, DOGE might be the summer’s highflyer as other crypto themes are taking a backseat. Musk is on a marketing tour in re-inventing Twitter.”
Dogecoin Price Leads Altcoins Rally As Open Interest Soars to $500M
Dogecoin price validated an uptrend it has been teasing in the last few weeks, with support reinforced at $0.06. The initial bullish breakout above the lower descending trendline as shown on the daily chart, saw buyers gain confidence in a potential climb which came into play when Twitter rebranded to X.
The $11 billion crypto, ranking 8 in the market, now holds above all the moving averages including the 50-day Exponential Moving Average (EMA) (red) which is in line to offer support at $0.069, the 100-day EMA (blue) at $0.07128 and the 200-day EMA (purple) at $0.075.
DOGE/USD daily chart | Tradingview
If Dogecoin price weakens resistance present at the upper descending trendline and sustained an uptrend above $0.08, a door may open for gains targeting highs above $0.1 and November’s resistance at $0.0158.
Adding credence to the bullish outlook is a buy signal from the Moving Average Convergence Divergence (MACD) indicator. DOGE long traders capitalizing on this momentum index look out for bullish crosses characterized by the MACD line in blue crossing above the signal line in red.
Meanwhile, traders who caught Dogecoin’s uptrend in the last few days may want to consider locking in the gains, now, the Relative Strength (RSI) is showing signs of a reversal after brushing shoulders with the oversold region at 80.
In case of a trend reversal, the 200-day EMA will provide the first strong support with lower levels at $0.067 and $0.06 becoming instrumental if declines surge.
The dollar value locked in active Dogecoin perpetual futures traders or what other platforms refer to as the notional open interest has peaked at $500 million for the first time since April 19, according to market data as presented by Coinglass.
Open interest has soared implying an influx of new money into the Dogecoin market – Coinglass
Moreover, over the last couple of weeks, open interest doubled to $6.2 billion, almost reaching $6.43 – the peak on April 8. If the open interest and money inflow volume continue to rise, an uptrend to $0.1 could be confirmed.
Nevertheless, such an occurrence may fail to manifest with the open interest weighted-funding rates dropping to zero at the time of writing, thus hinting at Dogecoin longs canceling out short positions.
- Breaking: Singapore Court Rules Crypto As Property In ByBit Judgement
- Just-In: SBF To Face Court Over Bail Condition Violation
- Cathie Wood’s Ark Invest Sells Coinbase And Tesla Shares Amid Earnings Report