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Dogecoin (DOGE), the king of meme coins, has experienced significant price volatility over the last seven days, dropping by 1.57%. However, the dog-themed meme coin appears ready to soar as investors have bet heavily in the coin’s futures market.
DOGE open interest surge fuels breakout hopes
According to CoinGlass data, over the last 24 hours, investors have been optimistic about a potential breakout in the price of DOGE on the cryptocurrency market. Notably, traders have committed 11.00 billion DOGE, valued at $1.77 billion, to the futures market of the top meme coin.
This move signals bullish expectations among investors. These investors anticipate a possible price uptick soon, hence the increase in open interest.
For clarity, open interest refers to the total sum of unsettled, active futures contracts in fiat currency that investors have committed to Dogecoin, in this case, $1.77 billion.
Interestingly, after a volatile week that saw DOGE plunge to a low of $0.1575, the meme coin is rebounding gradually and gearing up for a breakout. As of press time, Dogecoin was trading at $0.1613, representing a 2.23% decline over the last 24 hours.
The meme coin has managed to stay above the $0.16 support over the past four days. Additionally, market participants are active again, with trading volume up 10.79% to $795.31 million.
What’s next for Dogecoin?
The spike in Dogecoin’s trading volume bolsters confidence that the meme coin could surge on the cryptocurrency market. If DOGE’s $0.16 support holds, the meme coin could rebound from there to reclaim $0.185 or possibly retest the $0.20 resistance level.
Notably, despite price fluctuations, Dogecoin has maintained a steady growth trajectory, which has kept investors optimistic. For instance, over the past 365 days, DOGE has outperformed top altcoins, including Ethereum and Solana.
Whereas DOGE has increased by over 26% during this period, Ethereum has declined by more than 29%, with Solana down by approximately 3%. This indicates better performance over 12 months.
Vladislav Sopov
U.Today Editorial Team