Dogecoin (DOGE) Surges Over 6%, Breaking From Multi-Month Downtrend

Dogecoin (DOGE), the largest meme coin by market capitalization, surged over 6% in the last 24 hours, currently trading at $0.1243.

Dogecoin (CRYPTO: DOGE) price surged over 6% in the last 24 hours, reaching $0.1243 — its highest value since September 29, 2024. The world’s largest meme coin by market value rose from a local low of $0.0890 on September 6, notching a 38.88% gain.

What Happened: The recent spike in Dogecoin price comes amid a sharp rise in its trading volume. Spot trading volumes for the token rocketed to $2.29 billion on October 17, showcasing a 71.42% increase over the previous 24 hours.

As Dogecoin gains momentum, traders are keeping a close eye on key resistance levels and turning to Dogecoin price prediction for further insights into the token’s price movements.

The altcoin’s spike in trading activity pushed its market capitalization back above the $18 billion mark, solidifying DOGE's position as the largest meme coin by market value.

In comparison to other meme coins on October 17, the cryptocurrency maintained a clear lead over its rivals. For context, the trading volume of the meme token outpaced that of Pepe (CRYPTO: PEPE) by over $1.365 billion.

One of the key drivers behind Dogecoin’s recent price rally could be its correlation with Bitcoin (CRYPTO: BTC). As observed on CoinMarketCap, Bitcoin’s climb beyond the $68k-mark influenced other altcoins, including Dogecoin.

As Bitcoin approaches the $70,000 threshold, which it last crossed in early June 2023, market analysts are paying close attention to the cryptocurrency’s movements. If Bitcoin continues to rally, we can expect to see Dogecoin follow a similar trajectory, with the $0.14 resistance level being a crucial point of interest for traders.

Several analysts have highlighted how Dogecoin’s price movements are breaking from a multi-month downtrend. One such example comes from analyst Mikybull Crypto, who pointed out that the DOGE price recently broke above a 180-day descending trendline, indicating the possibility for further gains.

$DOGE

It looks like god candle is coming.

Deja vu indeed pic.twitter.com/bbtjkDTYBm

— Mikybull ?Crypto (@MikybullCrypto) October 16, 2024

Analyst Alstreet Bets shared an optimistic outlook for Dogecoin in an October 16 post, stating, "DOGE ready to run. Resistance at 0.13 and 0.14." Notably, the MACD indicator also suggests a bullish momentum in the market.

bullish signals, suggesting market conditions are increasingly favorable for te cryptocurrency.

Moreover, Dogecoin has flipped crucial support levels, including the 50-week and 100-week SMAs at $0.1073 and $0.1102, respectively. This bullish momentum could see DOGE push higher, with traders eyeing the March 28 high of $0.2290 as the next major target.

Open Interest (OI) Rises, Backing Dogecoin’s Recovery Another factor supporting Dogecoin’s recent recovery is the sharp rise in its open interest (OI). On October 17, Dogecoin’s OI surged to $784.22 million, showing a 32.95% increase from the previous day’s $593.7 million. Dogecoin’s perpetual futures funding rate also indicates an uptick in demand for long positions.

As observed on CoinGlass, the average eight-hour funding rate stood at 0.0102%, translating to a 0.2142% cost over seven days. This suggests that traders are willing to pay a premium to maintain their positions, reflecting optimism around Dogecoin’s price trajectory.