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Dogecoin reversed a five-day drop since Nov. 24, seeing a sharp rise in the Tuesday session.
On Tuesday, Dogecoin rose from $0.137 to $0.147, printing a large green daily candlestick. The surge continued on Wednesday, reaching an intraday high of $0.1529. This extends a recovery from the Dec. 1 low of $0.131.
At press time, Dogecoin was up 8.64% in the last 24 hours to $0.1496, marking its strongest breakout in weeks. The dog coin is on track to erase weekly losses, just down 0.6% in the last seven days.
The upside shift demonstrates that the bearish trend the market has been in since early October is vulnerable, but that there is an avenue for a bullish reversal.
More noticeable is the fact that Dogecoin's futures activity has surged 10,187% on Bitmex crypto exchange, reflecting that traders are actively piling into Dogecoin's recent move.
According to CoinGlass data, Dogecoin futures volume reached $120.76 million on Bitmex in the last 24 hours, representing a 10,187% surge in activity.
DOGE opened near $0.135 on Tuesday before lifting steadily. An explosive move triggered a volume burst, sending the price higher. In the last 24 hours, Dogecoin trading volume on spot exchanges rose 47.24%, reaching $1.78 billion, according to CoinMarketCap data.
What's next?
Dogecoin rallied alongside the rest of the market as bulls made a comeback after a sell-off at December's start.
The amount of $0.1347 is now the crucial support level for short-term bullish setups. The breakout structure supports upside bias, but failure to decisively break $0.15 may cause a pullback to $0.142-$0.144.
Market flows and ETF speculation might continue to act as secondary catalysts for the Dogecoin price, while the broader market sentiment might be more significant to watch in the days ahead.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team