Analysts are betting on high price rally potential for the biggest meme coin in the cryptocurrency landscape, as market watchers see that Dogecoin is gaining momentum and could be ripe for a price explosion.
Data shows that optimism about the meme coin grew, fueled by an increase in open interest in the coin and a continued price recovery that led the token to break its resistance level.
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Dogecoin open interest earns $4.7 billion
Analysts believe that Dogecoin could experience a rally that would bring the meme coin to the level of $0.39, saying that the token is currently in recovery mode and gaining momentum.
Open interest is one of the positive signs that indicate a possible upward move for DOGE. Data shows that there is a growth in the open interest in the token.
According to CoinGlass, open interest in Dogecoin increased by nearly 10% in the last 24 hours, allowing the meme coin to hit $4.74 billion.
Meanwhile, a crypto analyst noted that the long-to-short ratio of 0.9964 could indicate a slightly higher number of bearish positions. However, the sign is on the positive side regarding the volume-weighted funding rate which has increased by 0.0098% – a sign that investors are willing to pay a premium to maintain their support positions. .
Overall, analysts are confident that the derivatives data points suggest that the upward trend will continue for the largest meme coin.
Staying above the Fibonacci support level
Crypto analysts noted that DOGE reached a price of $0.31385, which is still above its 23.62% Fibonacci support level. They pointed out that although DOGE initially faced strong bearish pressure, the token managed to recover and gain a strong momentum.
Market watchers said data indicated that the price of DOGE rose to close to the 50% Fibonacci level, trading at $0.3675 and seeing a series of consecutive bullish candles.
Dogecoin climbed above the 200 EMA line and reached the 38% Fibonacci level, driving the likelihood of positive crossovers for the token.
In addition, indicators indicated that DOGE has reached its overbought limit in its 4-hour RSI, supporting the prospects for the indicator to continue to rise.
In terms of press time, Dogecoin is going to buy for 0.3776 US dollars with a total market capitalization of $55 billion. DOGE is up 3.1% and 15.8% in the daily and weekly frames, data from Coingecko shows.
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Is $0.39 within range?
Analysts suggested that there are many signs that Dogecoin is gaining strength that could move it to $0.39 per coin.
DOGE continues to dominate its share of the crypto landscape at around 50%, crossing the psychological resistance level of $0.35.
Crypto watchers noted a 5% increase in the altcoin market, another metric that could help Dogecoin in its upward movement.
Featured image from Cybernews, chart from TradingView
