- Dogecoin price rose above $0.36 on Tuesday, outperforming rivals SHIB and PEPE with gains of 13% over the past 10 days.
- Dogecoin open interest surpassed $3.8 billion as traders accumulated $570 million in new long positions over the past three days.
- With a week to go until Trump’s inauguration, DOGE appears poised for more upside as bullish speculators take over.
Dogecoin price rose above $0.36 on Tuesday, outperforming rivals SHIB and PEPE with daily gains of 13%. With a week to go before Trump’s inauguration, DOGE appears poised for more upside as bullish speculators hold on.
Dogecoin price breaks $0.35 resistance as Trump bets on market traders
Dogecoin (DOGE) broke above the $0.36 resistance level on Tuesday, posting a 13% gain in 24 hours and outpacing rival memecoins like Shiba Inu (SHIB) and PEPE. The price rise comes as speculative fervor builds ahead of the upcoming inauguration of former President Donald Trump, which has captivated a segment of crypto traders betting on market volatility.
Dogecoin Price Action | DOGEUSDT
The rally reflects a change in sentiment, with bullish traders taking control after DOGE’s earlier consolidation near $0.33.
Renewed retail interest and social media enthusiasm could propel the meme further, especially as sentiment around major macroeconomic risks eases.
At press time, Dogecoin is trading at $0.36, holding firmly above key support levels.
If the momentum persists, the cryptocurrency could target the $0.40 mark in the coming sessions, marking a significant recovery from previous lows this month.
Dogecoin Open Interest Increases by $570 Million in 3 Days
Despite a period of price consolidation last week, traders continued to place speculative bets on Dogecoin. This suggests that strategic Dogecoin traders are preparing for potential bullish triggers related to upcoming events.
Affirming this position, Coinglass’ open interest chart below tracks capital flows into DOGE perpetual futures contracts.
Dogecoin Open Interest vs. DOGE Price | Source: Coinglass
As shown above, Dogecoin has seen a remarkable increase in open interest, with $570 million in new positions added over the past three days.
This brings total open interest in DOGE futures to $3.81 billion as of January 14, according to Coinglass data.
The 15% increase in open interest exceeds the 10% gains seen in DOGE spot prices, indicating that leveraged traders are betting on further upside.
Historically, when open interest rises faster than prices during a rally, it reflects traders’ desire to hold onto their positions rather than take profits, suggesting confidence in further upward momentum.
This momentum could propel DOGE towards the $0.40 resistance level in the coming days.
Dogecoin Price Forecast: $0.40 Breakout Could Trigger Further Gains
Dogecoin’s current price action displays notable bullish momentum, with the token trading at $0.3568, surpassing the volume-weighted average price (VWAP) level of $0.3516.
This technical signal highlights increased buying support as the market regains confidence following the recent $570 million surge in open interest.
The upper band of the Keltner channel at $0.4007 represents a critical resistance level, and a successful breakout could propel DOGE into a sustained rally.
Dogecoin (DOGEUSD) Price Forecast | Trading View
From a bullish perspective, the recent rise above VWAP indicates institutional buying pressure, supported by strong open interest growth.
If DOGE breaks through the $0.4007 resistance, traders could see further gains towards the $0.45 level, due to the cumulative effect of leveraged long positions.
Additionally, the Accumulation/Distribution Line (ADL) at 1,573 suggests stable capital inflows, reinforcing the likelihood of sustained upward momentum.
Conversely, downside risks remain if DOGE fails to sustain above $0.35, potentially triggering profit-taking or liquidation of leveraged positions.
A reversal towards the Keltner channel midline at $0.3469 could signal weakening demand, pushing prices into a consolidation phase.