Dogecoin (DOGE), the largest meme coin, is gearing up for a potential price surge after six months of decline. On September 13, 2024, DOGE broke out of its long-standing descending trendline, signaling the start of a new bullish phase. As a result, on-chain metrics such as future open interest, long/short ratio, and OI-weighted funding rate show growing optimism among traders.
DOGE Price Momentum
At the moment, DOGE is trading around $0.1053, reflecting a 4.5% price increase in the last 24 hours. During this period, its trading volume also jumped by 23%, showing that more traders and investors are getting involved after the breakout. The rising volume suggests that buying pressure is intensifying.
Technical Analysis of DOGE and Key Levels
Despite still being below the 200 Exponential Moving Average (EMA) on the daily chart, DOGE maintains a bullish outlook. Experts attribute this positivity to the breakout from the descending trendline. Furthermore, DOGE’s Relative Strength Index (RSI) also broke out from a symmetrical triangle pattern on the daily chart, confirming increasing bullish momentum.
If DOGE closes a daily candle above the $0.106 level, it could rise 20%, reaching the $0.128 mark. However, failure to close above this critical level might invalidate the bullish scenario and send DOGE back into consolidation.
Key Bullish On-Chain Metrics
DOGE’s bullish outlook gains more support from positive on-chain metrics. According to Coinglass, the long/short ratio currently sits at 1.051, signaling that 51.25% of traders hold long positions while 48.75% are short. This indicates a slight bullish edge in market sentiment.
Additionally, DOGE’s open interest surged by 9.2% over the past 24 hours, continuing its steady rise since September 8, 2024. A rising open interest, paired with a long/short ratio above 1, often points to strong buying opportunities.
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Lastly, DOGE’s OI-weighted funding rate is currently 0.0067%, further underscoring the positive market sentiment. A positive funding rate typically aligns with bullish expectations in the market.
