Dogecoin was the cryptocurrency that benefited the most from the short-term rise seen in global risk markets just before the US Federal Reserve’s interest rate decision. Dogecoin, which reached $ 0.112 with a value increase of up to 14 percent on Wednesday, surpassed the total cryptocurrency market.
Market revival and exchange-traded product impact
This remarkable rise in Dogecoin prices was also influenced by 21Shares’ physically collateralized Dogecoin exchange investment product, which was launched on Germany’s leading electronic transaction platform, Xetra. It is stated that this development has especially increased the interest of institutional investors.
In the last 24 hours, Dogecoin’s open position in the futures market increased by 25 percent to $1.74 billion. This increase reached 46 percent in the last two weeks. This rise in futures indicates that both derivative investors and professional funds are turning to Dogecoin.
As the price rises, the open position volume grows in the same direction, which is generally described by experts as an indication that corporate participation is strengthening and new capital is entering the market.
Technical indicators and historical patterns
Dogecoin’s latest movements also attract attention in terms of technical analysis. The price has re-touched the ascending trend line seen in 2023, leading to a 300 percent rally. The upward crossover on the MACD indicator, which is frequently used in technical analysis, gives a new signal that the price has passed the bottom point.
Analysis predicts that if this pattern is repeated, Dogecoin could rise by more than 300 percent to $0.33 in the coming weeks. According to the current price data in the market, the DOGE/USD parity exceeding the resistance area between 0.10 and 0.11 dollars will be decisive for the continuation of the rise.
Famous analyst Trader Tardigrade, in his post on his social media account, said “the weekly chart is clean, the bottom has formed, the structure is maintained” and pointed out that with the current technical outlook, Dogecoin may rise up to $ 1 in the next move.
Macro developments and liquidations
Dogecoin’s rapid rise coincided with the US Federal Reserve’s Federal Open Market Committee meeting. It was considered certain in the markets that interest rates would be kept constant between 3.50 and 3.75 percent.
In the past, while Dogecoin experienced an increase before interest rate meetings, it often encountered correction movements after the decision. In the last major shock in March, DOGE fell by 15 percent, leading to the closing of a $ 890 million position in futures transactions and the liquidation of Dogecoin worth $ 30 million in total.
The technical formations in Dogecoin’s price and the revival in transaction volume turned attention back to this popular cryptocurrency. If the price breaks the critical resistance at $0.11 in the coming days, it may pave the way for a long-term upward wave.
