In a surprising twist in the cryptocurrency market, Dogecoin (DOGE) has rallied nearly 10% this week, showing remarkable resilience amid the ongoing U.S. President Donald Trump’s tariff war and significant macroeconomic challenges. While many altcoins have struggled to recover, Dogecoin has regained traction, soaring back above $0.2058 for the first time in nearly two weeks.
Reaching a peak of $0.20585 on March 26, Dogecoin’s recent performance is noteworthy. As the leading meme coin in the crypto market, it has defied the downward trends plaguing many of its counterparts. Observers are predicting that DOGE could extend its gains by as much as 11%, testing crucial resistance zones around $0.24040 to $0.21465. The upper threshold at $0.24040 marks a staggering 24% rise from its current trading price.
Market analysts note two essential momentum indicators that support a bullish outlook for Dogecoin. The Relative Strength Index (RSI) stands at 52, which is above the neutral level, indicating a potential for further upward movement. Additionally, the Moving Average Convergence Divergence (MACD) shows green histogram bars hovering above the neutral line, suggesting underlying positive momentum in Dogecoin’s price trend.
When examining Dogecoin’s on-chain metrics, it’s clear that the number of DOGE holders is increasing. Continued growth in the holder base reflects a healthy demand among traders. Interestingly, the network’s realized profit/loss metrics suggest that DOGE holders are currently taking profits on a smaller scale, which means minimal selling pressure that could adversely affect the price. Active addresses on the network have remained steady since mid-March, further supporting this bullish sentiment.
The analysis of Dogecoin derivatives reveals that open interest has been recovering since a low point on March 12, reaching $1.98 billion. Notably, as DOGE trades around $0.19, this uptick is a positive signal for the market. Liquidation data indicates that $4.29 million in long positions were liquidated recently, prompting traders to exercise caution before increasing their derivatives positions. Currently, the long/short ratio exceeds 1 on major exchanges, indicating a bullish outlook among derivatives traders.
In addition to market trends, DOGE holders are closely monitoring developments regarding Bitwise’s Dogecoin ETF filing with the SEC, which aims to position Dogecoin as a legitimate investment option for institutional investors. A positive shift in cryptocurrency regulations, including the pending stablecoin bill in Congress, and sustained demand from large wallet investors may contribute further to DOGE’s uplifting trajectory.
As Dogecoin continues to navigate these challenging times, maintaining a focus on its performance metrics and market conditions will be crucial for traders and investors alike.
