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Dogecoin (DOGE), the original and arguably most well-known memecoin, is currently trading at $0.17659. While experiencing a significant 30.86% drop in its intraday trading volume to $917.05 million, DOGE has demonstrated a solid 6.89% increase in its price this month. This upward trend suggests a strengthening bullish sentiment for the altcoin in the longer term, despite the recent dip in trading activity.
NASDAQ’s ETF Filing Could Catalyze Dogecoin’s Next Move
Adding to the positive outlook for Dogecoin is the recent rule change in the filing to list the 21Shares Dogecoin ETF by NASDAQ. This development has the potential to significantly influence the price action of the cryptocurrency in the coming month. The increased accessibility and institutional interest that an ETF could bring may act as a major catalyst for further price appreciation.
Currently facing its next major resistance zone around the $0.20 mark, the question remains whether Dogecoin can maintain its current bullish momentum and potentially lead the broader memecoin market into a more substantial bullish cycle. Analysts are closely watching if DOGE can break through this key level, which could pave the way for further gains towards the $0.25 mark in May.
Increased Open Interest Signals Strong Accumulation
Despite a period of relative stability in market dominance after a previous dip, Dogecoin has shown increased volatility in other key metrics. Notably, the open interest (OI) for Dogecoin has seen a dramatic increase, jumping by 57.22% from $973.13 million to $1.53 billion in just 29 days. This significant rise in open interest indicates a strong phase of accumulation for the leading Ethereum-based memecoin, suggesting growing confidence and investment activity in the asset. Open interest, which reflects the total number of outstanding contracts, serves as a crucial indicator of market liquidity and overall sentiment.
Technical Analysis Points to Potential Bullish Trajectory
A technical analysis of Dogecoin‘s price action reveals a neutral movement in the past week, indicating a temporary balance between buying and selling pressures. However, the cryptocurrency appears to be forming a robust bullish trajectory, supported by a strong base around the $0.15 level. The 50-day Exponential Moving Average (EMA) is currently acting as a vital support around the $0.1790 mark. Conversely, the 200-day EMA, situated around the $0.22 range, presents a potential retest level in the daily timeframe, suggesting a mixed outlook in the short term.
Furthermore, the Relative Strength Index (RSI) continues to hover above the neutral point on the daily chart, with its average trendline consistently providing support. This suggests that Dogecoin may continue to gain upward momentum in the near future.
While a bearish pullback could see the price retrace towards the $0.15 support, failure to maintain momentum at that level could lead to a more significant drop towards the $0.125 crucial support. However, if bullish sentiment prevails, Dogecoin has the potential to retest the $0.20 resistance and potentially push towards $0.25 in the coming weeks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Nasdaq Files for 21Shares Dogecoin ETF: SEC Approval Process Begins
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
