Dogecoin’s DOGE price has recovered from the lows of $0.12 after dipping to it at the beginning of May.
Although the meme coin leader is stuck under the barrier of $0.16, it could be cleared.
Dogecoin Price Rise Anticipated
Dogecoin’s price is noting a surge in bullishness at the hands of investors. Traders can be seen setting up long contracts, which has resulted in the Open Interest rising by close to $200 million in the span of two days.
Open interest refers to the total number of outstanding derivative contracts at a given time, providing insight into market activity and potential future price movements. It reflects the total volume of active positions yet to be closed, indicating market sentiment and liquidity.
OI increase can also be associated with a surge in short contracts. However, considering the positive funding rate, the increase is due to long contracts.
Dogecoin Open Interest. Source: Coinglass
This rise could be coming soon since, despite the recent recovery, Dogecoin’s price still has considerable room to grow. Of the total circulating supply of DOGE, only 83% is in profit.
Generally, rising profits tend to suggest potential selling. However, that is only when the asset forms a market top. Dogecoin, however, is far from a market top as such an instance is noted only when 95% of the supply is in profit.
Read More: Dogecoin (DOGE) vs Shiba Inu (SHIB): What’s the Difference?
Dogecoin Supply in Profit. Source: Santiment
DOGE Price Prediction: Recovery
Dogecoin’s price has witnessed resistance at $0.16, a level that has been tested multiple times in the past. Flipping it into support would send prices to $0.18, which is the barrier between DOGE and $0.20. Breaching these resistances would enable a 25% rally, effectively helping the meme coin regain its recent losses.
Read More: Dogecoin (DOGE) Price Prediction 2024 / 2025 / 2030
Dogecoin Price Analysis. Source: TradingView
However, if the breach of this resistance fails, Dogecoin’s price is vulnerable to falling to $0.15. Losing this support could decrease the meme coin to $0.12, invalidating the bullish thesis.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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