Why is Dogecoin (DOGE) Price Rising Today?
Dogecoin (DOGE) has seen a notable 6% price increase in the last 24 hours, reaching $0.4382. This rally aligns with a broader market recovery, as the overall cryptocurrency market cap rose by approximately 3.6% to hit $3.69 trillion. However, several technical and on-chain metrics indicate that Dogecoin could be on the brink of new all-time highs.
Let’s dive into the key factors behind DOGE’s surge today.
Dogecoin Rallies Alongside Bitcoin and Ethereum
The price increase in Dogecoin is part of a larger trend across the cryptocurrency market, driven primarily by the impressive gains of Bitcoin and Ethereum. Bitcoin, the world’s largest cryptocurrency by market cap, surged by 6.5% in recent days, setting a new all-time high of $103,900 on December 5. Ethereum followed suit with a 5.6% rally, pushing its price above $3,917.
Notably, Dogecoin has been one of the few top-cap cryptocurrencies posting significant gains alongside Bitcoin and Ethereum, signaling strong investor confidence.
Crypto Market Recovery: Impact of Trump’s Crypto-Friendly Policies
The recent rise in cryptocurrency prices comes amid growing expectations of a more crypto-friendly regulatory environment under former President Donald Trump’s administration. Trump’s recent nomination of Paul Atkins, a known crypto advocate, to replace Gary Gensler as the Securities and Exchange Commission (SEC) chair has been a key factor fueling optimism. This leadership change is expected to ease some of the regulatory hurdles that have impacted the crypto industry, particularly under the Biden administration.
In addition, Trump has appointed hedge fund manager Scott Bessent and Cantor Fitzgerald CEO Howard Lutnik to key positions within the Treasury and Commerce departments, signaling a cabinet that could be more supportive of digital assets. These moves have contributed to a general bullish sentiment in the crypto markets, benefiting Dogecoin and other major coins.
Surge in Dogecoin’s Open Interest and Funding Rates
Another significant indicator of Dogecoin’s bullish momentum is the increase in funding rates and open interest (OI). On December 5, Dogecoin’s open interest-weighted funding rate surged to 0.098%, indicating a growing appetite for long positions in DOGE. This metric reflects the willingness of traders to place bets on the continued rise of Dogecoin’s price.
Moreover, Dogecoin’s open interest reached record highs, increasing by 17% over the last 24 hours to $4 billion. A rising OI suggests that fresh capital is flowing into the market, adding fuel to the bullish outlook for DOGE.
Technical Indicators: Bullish Chart Patterns
On the technical front, Dogecoin’s price action has remained bullish. Since November 12, DOGE has consistently formed higher highs and higher lows, resulting in an ascending parallel channel pattern on the daily chart. This chart formation suggests that as long as DOGE’s price remains within the channel, the upward momentum is likely to continue.
Currently, DOGE is sitting at support near the middle of the channel around $0.44. If the price holds above this level, there’s potential for an upward move toward the upper boundary of the channel at $0.47. Beyond that, the next psychological target for DOGE would be the $0.50 level, a 13% gain from current levels.
Bullish Moving Averages: More Upside for DOGE?
A key signal that supports the ongoing bullish trend is the bullish cross formed on November 18, when the 100-day simple moving average (SMA) crossed above the 200-day SMA. This crossover is traditionally considered a strong bullish signal, and since then, Dogecoin has made a move toward multi-year highs, peaking at $0.48. The continuation of this bullish signal suggests that DOGE may have more room to rise.
Independent analyst Trader Tardigrade has also shared a bullish setup for Dogecoin, predicting a short-term target of $0.55 on the four-hour timeframe.
Conclusion
The recent price surge in Dogecoin is driven by a combination of broader market rallies, regulatory optimism, and strong technical indicators. With growing institutional interest, rising funding rates, and a bullish chart pattern, DOGE could be poised for even greater gains in the near future. If the current trends continue, Dogecoin may soon reach new all-time highs, potentially surpassing the $0.50 mark.
Stay updated with the latest trends in the crypto market and watch for further developments in Dogecoin’s price action.
