Dogecoin Surges Over 10% Amid Memecoin Recovery

According to Cointelegraph, Dogecoin (DOGE), the largest memecoin by market capitalization, has surged more than 10% in the past 24 hours as memecoins experience a broad recovery. Currently trading at $0.1262, DOGE has reached its highest value since September 29, marking a 44% increase from its local low of $0.08888 on September 6. Trading activity has also spiked alongside DOGE’s price surge. DOGE’s spot trading volumes topped $1.8 billion on October 16, rising by 95% over the last 24 hours and 165% over the last seven days. Its market capitalization has reclaimed the $18 billion mark, solidifying its position as the largest memecoin globally, according to CoinMarketCap data. On October 16, DOGE was the most traded memecoin, outpacing Pepe (PEPE) by over $600 million in volume. Several crypto traders expect Dogecoin to build on the current momentum to initiate a sustained recovery. Pseudonymous altcoin analyst Alstreet Bets stated, “Doge is ready to run,” in an October 16 post on X. Meanwhile, crypto technical analyst Mikybull Crypto shared a chart showing DOGE price breaking above a 180-day descending trendline, with $0.13 and $0.14 being key resistance levels to watch. The multimonth descending trend line at $0.1047 is acting as immediate support for the memecoin. The moving average convergence divergence (MACD) indicator has just produced a bullish signal, suggesting market conditions favor the upside. DOGE’s latest rally has seen it flip crucial levels into support, including the 50-week and 100-week simple moving averages (SMAs) at $0.1196 and $0.970, respectively. Increased buying from these buyer congestion zones will likely push DOGE price higher toward the March 18 high of $0.2286. However, futures traders remain cautious, with $587,344 in short positions at risk if the price recovers to $0.130, where the 200-day SMA currently sits. A further 10% decline to $0.114 would wipe out $1.73 million in long positions. The surge in Dogecoin’s price on October 14 follows a sharp rise in its open interest (OI), a key metric used to assess market sentiment and anticipate future price movements. DOGE’s OI rose to $755.5 million on October 16, approximately 27.3% higher than the $593.7 million recorded a day prior, according to CoinGlass data. Additional data from CoinGlass reveals increasing demand for leveraged long positions in DOGE over the last few days, as indicated by the perpetual futures funding rate. This signaled sustained bullish sentiment, with traders willing to pay more to maintain long positions, ultimately driving DOGE prices higher. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.