Dogecoin is now looking to write its price trajectory for the rest of the month following an interesting series of price actions last week. The meme token saw its value fall from $0.2099 to $0.1689 last week, representing a fall of almost 20% within the space of a few days.
However, it seems the DOGE investors are looking to move differently this week, as various on-chain metrics are starting to signal a full reversal into bullish momentum over the weekend.
Dogecoin Trading Volume Spikes Amidst Price Appreciation
Dogecoin has seen its trading volume skyrocketing recently amidst a buildup of buying pressure. According to data from Coinglass, Dogecoin’s trading volume in the derivatives market has increased by 31% in the last 24 hours to over $4.61 billion. At the same time, data from Coinmarketcap shows a 13% increase in the spot market to reach $2.83 billion in the past 24 hours.
With volume comes buying pressure, and DOGE is seeing a lot of it. Interestingly, the increased buying has already driven the DOGE price up by over 6% in the last 24 hours $0.208. The number of DOGE long positions has also risen sharply, indicating traders expect the price to continue climbing.
Surge In Open Interest
Dogecoin open interest has seen a healthy rise of nearly 10.15% in the past 24 hours to $1.74 billion, indicating that more traders are opening new positions in DOGE. This rise in open interest signals that the bullish reversal seen in Dogecoin last week’s price decline may have enough momentum, as traders anticipate further gains throughout the week.
The majority ($574.95 million) of the open interest came from Binance. Bybit and Singapore-based BingX came in second and third, with $449.44 million and $229.42 million respectively.
Whale Accumulation Signals Growing Confidence In DOGE
On-chain data has shown a recent accumulation trend from DOGE whales, with large amounts of Dogecoins leaving crypto exchanges during the weekend. For example, Whale Alerts recently noted the transfer of 304 million Dogecoins worth $52.3 million from crypto exchange Binance into three private wallets.
DOGE To $0.3?
At the time of writing, DOGE is trading at $0.2076 after hitting a bottom around $0.16 last week. Interestingly, the increase in the metrics mentioned coincided with DOGE attempting to break through the $0.20 resistance level during the weekend.
Now that the crypto has broken out of $0.20, the next target for the bulls is $0.22. If DOGE can close above $0.22 and hold the price level, many investors expect it to continue climbing to $0.30 and beyond.
According to a prediction, recent price action has seen the return of a bullish fractal to DOGE. If history repeats itself, the bullish fractal could see DOGE surging to $12.
DOGE price sits at $0.2 | Source: DOGEUSDT on Tradingview.com
Featured image from CryptoRank, chart from Tradingview.com