Analysts highlight similarities to its 2021 Dogecoin bull run, suggesting a potential breakout following the recent 46% correction.
Amid the broader crypto market recovery, the Dogecoin price DOGE $0.16 24h volatility: 5.6% Market cap: $23.81 B Vol. 24h: $919.57 M has also surged 3% shooting to $0.38 with daily trading volumes surging 18% and crossing $4.0 billion. The DOGE technical chart is showing a similar setup ahead of the mega bull run witnessed back in 2021.
Popular crypto analyst Ali Martinez highlighted that the Dogecoin price has begun the second upward leg during the week of January 25, 2021, after a 56% correction from the previous top. Following the run up last year in 2024, DOGE price has already faced a 46% correction over the past few weeks. Thus, the world’s largest crypto could be gearing up ahead for a mega breakout.
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Source: Ali Charts
If history repeats itself, the next bullish movement for Dogecoin may begin as early as next week, sparking renewed interest among investors, noted Martinez. Looking at the derivatives data from CoinGlass, the DOGE open interest is up by 6.3% to more than $4.73 billion. This shows a growing traders interest for the meme coin.
The Dogecoin price has managed to hold above the crucial resistance of $0.36 after crossing it earlier this week. As the Donald Trump inauguration on January 20 approaches closer, the speculative fervor has picked up in the market.
Rising retail interest and heightened social media buzz could drive the meme coin higher, particularly as concerns over major macroeconomic risks begin to subside.
Dogecoin Open Interest on the Rise
Dogecoin has seen a significant increase in open interest, with $570 million in new positions added over the last three days.
According to CoinGlass, total open interest in DOGE futures now stands at $4.73 billion as of January 16. The 15% rise in open interest surpasses DOGE’s 10% spot price gains, suggesting that leveraged traders are anticipating further upward momentum.
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Source: Coinglass
The surge in open interest faster than the DOGE price gains shows the willingness of traders to hold their positions. This development could help the Dogecoin price surge to more than $0.40 resistance in the next few days.
DOGE Price Rally to $3
For the Dogecoin price to begin a mega bull run, it must first clear its immediate resistance. If Dogecoin (DOGE) breaks through the $0.4007 resistance, it could pave the way for further gains toward $0.45, fueled by the momentum of leveraged long positions. However, a failure to sustain levels above $0.35 may expose DOGE to bearish risks, including profit-taking or the liquidation of a leveraged position.
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Source: Investments CEO
On the other hand, a popular analyst Investments CEO has shared a Dogecoin chart showing a similar setup ahead of the 2021 bull rally. Thus, if a similar pattern repeats, we could see a rally all the way to $3.0.
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