Why is Dogecoin price up today?

Dogecoin DOGEUSD price has risen over 5% in the last 24 hours to $0.1377, outperforming the crypto market, which rose by around 0.82% in the same period. 

Data from Cointelegraph Markets Pro and TradingView shows that DOGE has been on an uptrend over the last two weeks, rising 45% between July 8 and July 22.

Let’s take a closer look at the most likely reasons behind Dogecoin’s latest rally.

DOGE price action mirrors the uptrend among memecoins

DOGE’s price performance over the last seven days mirrors a wave of recovery in the broader memecoin sector. According to data from CoinMarketCap, other large marker cap cryptocurrencies in this sector have posted double-digit growth over the past week.

Pepe PEPEUSD, an Ethereum-based memecoin, has gained 26% over the last seven days to trade at $0.00001762. The largest memecoin by market capitalization within the Solana ecosystem, Dogwifhat (WIF) has also rallied 56% while Bonk (BONK) has climbed 24% over the same period.

The most substantial gains were experienced by holders of Cat in a Dogs World (MEW), who saw their investments grow by 126% over the last seven days and 30% over the last 24 hours.

The uptick in the prices of memecoins follows a report by CoinGecko that this asset class remains among the top narratives in 2024.

Sentiment surrounding memecoins remains positive in 2024 as the sector emerged as one of the most profitable narratives in the crypto industry in 2024, posting the highest returns of 1,312% on average across the top tokens by market capitalization.

Dogecoin open interest climbs to five-week high

DOGE price gains accompany a rise in its open interest (OI) in the futures market, alongside persistently positive funding rates.

“Open interest in #Dogecoin futures has surged 19% as its price reached a 34-day high on July 20,” declared crypto trading company TOBTC in a July 21 post on X, adding that this had prompted “increased interest from traders.”

Data from Coinglass reveals that the number of unsettled DOGE futures contracts reached $757 million on July 22, a level last seen on June 17.

Meanwhile, the DOGE futures funding rates were positive, at 0.223% per week, up from -0.0462% five weeks ago.

The rise in OI indicates increased interest and activity in the market. Positive funding rates imply traders are willing to pay a premium to hold long positions, reflecting a more optimistic outlook on DOGE price.

DOGE price spike reflects bullish sentiment in the wider market

Analysts at TOBTC remain optimistic about DOGE continuing its uptrend, cautioning against “potential pullbacks,” citing a spike in the market sentiment indicator.

This is corroborated by data from Alternative.me, which confirms that the Crypto Fear & Greed Index–the indicator that tracks market sentiment toward cryptocurrencies–has jumped 45 points from its “extreme fear” score of 25 two weeks ago to the rest at a “greed” score of 70 on July 22.

This spike follows a decrease in bearish sentiment among sellers, as explained by market intelligence firm Santiment in their latest post on X.

“Those vocal about an impending bear market in early July have essentially disappeared” as Bitcoin (BTC) led the market in a rebound over the last two weeks.

Sentiments said,

The decrease in “sell” calls points to a shifting market sentiment toward a continued uptrend that is likely to push prices across the broader crypto market higher, including DOGE.

DOGE price nurtures a V-shaped recovery

DOGE’s price action since May 27 has been nurturing a V-shaped recovery chart pattern on the daily chart, as shown below.

A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. It is completed when the price moves up to the resistance at the top of the V formation.

DOGE appears to be on a similar trajectory. It currently trades above a crucial demand zone between $0.1276 and $0.1340, where the 50-day, 100-day and 200-day exponential moving averages are currently sitting.

The rising relative strength index and its position at 66, close to the overbought region, also provide insight into the bullish momentum behind the DOGE price.

This suggests that increased buying from the current levels is likely to see DOGE price complete the V-shaped pattern to trade at $0.1750.

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.