Dogecoin price opened at $0.38 on Saturday, January 4, up 25% since Elon Musk’s recent X profile updates shook the global cryptocurrency community on December 31. With inflows outpacing price movements, can DOGE topple $0.40 resistance?
Dogecoin becomes top gainer as markets react to Elon Musk’s X profile update
Dogecoin outperformed all top 10 cryptocurrencies this week as the global market crypto markets has had a positive start to the year in 2025. The memecoin sub-sector has notably attracted the interest of significant investors in the context of the ongoing recovery, a movement linked to Elon Musk.
The CEO of Tesla and SpaceX updated his X profile name as “Kekius Maximus” on December 31, while his profile picture included a direct reference to PEPE. This sparked intense speculation, driving up prices on global memecoin markets, including Dogecoin.
As shown in the table above DOGE Price was trading at just $0.31 on December 31. Following Elon Musk’s profile updates, the price of Dogecoin increased by 25.8%, reaching $0.39 at press time on January 4.
DOGE Traders Deploy $790 Million in New Capital Over the Last 5 Days
However, although the updates have since been rolled back, other key market indicators suggest that the bullish momentum in the DOGE market may persist. Notably, data from Dogecoin derivatives markets shows that new capital inflows recorded over the past week are outpacing current DOGE price gains, indicating further upside potential.
In support of this position, the Coinglass Open Interest chart below tracks real-time changes in capital invested in a cryptocurrency’s perpetual futures derivatives contracts. This serves as an indicator to monitor the directional flow of capital around critical market phases.
As highlighted above, Dogecoin open interest stood at $2 billion as of January 1.
But that figure has since climbed by $790 million to $2.79 billion at the time of publication on January 4, reflecting a 39.5% increase in the equity capital underlying the DOGE derivatives markets.
Importantly, this means that the 39.5% growth in open interest outpaced the 25% price gains seen in the DOGE spot markets.
When open interest rises faster than prices, it emits bullish signals for two main reasons.
First, the disproportionate growth in open interest relative to spot price gains suggests increasing leverage and increased speculative activity in Dogecoin derivatives markets.
Dogecoin Price Forecast: Surpassing $0.40 Could Trigger More Gains
As new capital continues to flow into DOGE trading positions, increasing liquidity eases the path for further upside.
To amplify gains, heavily leveraged DOGE traders are now incentivized to make quick spot purchases, which could push prices above $0.40 in the coming days.
Technical indicators on the DOGEUSD daily chart also support this optimistic bullish price prediction, with Parabolic SAR points moving below current prices, amid increasing volumes.
As seen below, Dogecoin Price Prediction hints that DOGE is positioned for further gains as it flirts with the $0.40 resistance level.
On the daily chart, Parabolic SAR points remain below the current price, a clear indication of sustained bullish momentum.
Increasing trading volumes confirm growing participation, while a positive volume delta suggests buyers remain in control.
This paves the way for DOGE to test $0.42 as the next key resistance, with $0.47 serving as a stretch target if bullish momentum builds.
Conversely, the prevalence of highly leveraged LONG positions introduces risks of high downside volatility if sentiment reverses.
In a bearish scenario, DOGE could find initial support at the $0.36 level – a key support level marked by prior accumulation. A larger pullback could see DOGE price test $0.34, where another major historic buying wall looms.
Ibrahim
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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