After being in a downtrend for almost six months, Dogecoin (DOGE) the biggest meme coin is poised for a significant price rally. On September 13, 2024, DOGE experienced an impressive price surge, resulting in a breakout of its long descending trendline.
Following this breakout, on-chain metrics including, future open interest, Long/short ratio, and OI-weighted funding rate, which measure market sentiment and trading positions, are flashing a bullish signal.
DOGE Price Momentum
At press time, DOGE is trading near $0.1053 and has experienced a price surge of over 4.5% in the last 24 hours. Meanwhile, its trading volume increased by 23% during the same period, indicating higher participation from traders and investors following the breakout.
Dogecoin (DOGE) Technical Analysis and Upcoming Levels
According to expert technical analysis, DOGE appears bullish despite trading below the 200 Exponential Moving Average (EMA) on the daily time frame. In addition to the descending trendline breakout, DOGE’s Relative Strength Index (RSI) also experienced a breakout from a symmetrical triangle on the daily time frame, indicating bullish momentum.
Based on the historical price momentum, if DOGE closes a daily candle above the $0.106 level, there is a strong possibility it could soar by 20% to the $0.128 level, in the coming days. However, this bullish thesis will only hold if DOGE closes the daily candle above the $0.106 level, otherwise, it may fail.
DOGE’s Bullish Key Metrics
However, DOGE’s current bullish outlook is further supported by the on-chain metrics. Coinglass’s long/short ratio currently stands at 1.051, indicating bullish market sentiment among traders. At present, 51.25% of top DOGE traders hold long positions, while 48.75% hold short positions.
Additionally, DOGE’s future open interest has increased by 9.2% in the last 24 hours and has been steadily rising since September 8, 2024. The increasing open interest, combined with a long/short ratio above 1, indicates potential buying opportunities. Traders and investors often consider this combination while building long or short positions.
On the other hand, the DOGE OI-weighted funding rate currently stands at 0.0067% and is positive, indicating bullish market sentiment. Typically, a positive OI-weighted funding rate is viewed as a bullish signal, while a negative rate suggests a bearish signal.
