Dogecoin price pops as volume and open interest surge

Dogecoin price showed a strong uptrend as investors turned to meme coins and Bitcoin surpassed $68,000.

Dogecoin (DOGE), the largest meme coin, rose to $0.1283, its highest level since September 29. It entered the bull market, up 56% from its lowest point in August.

DOGE’s rally took place in a high-volume environment. Data from CoinGecko shows 24-hour volume reached its highest level in more than two weeks at $2.25 billion.

A similar trend occurred in the futures market, where open interest rose above $768 million, its highest level since June 19. Higher open interest is usually a sign that demand for a cryptocurrency is increasing.

Dogecoin futures open interest | Source: CoinGlass

Dogecoin’s rise mirrors that of other meme coins that have been performing well over the past few weeks. Bonk (BONK) has increased by 14.2% in the last seven days, while Brett, Neiro and Cat in a Dog’s World have increased by over 20% in the same period.

It also comes as interest in cryptocurrencies returns. Bitcoin broke through the key resistance point at $68,000 for the first time in weeks. Additionally, investors are turning to Bitcoin, with spot ETFs recording inflows of $371 million on October 16. There has been a net inflow of over $19.7 billion into these funds since January.

Meanwhile, Dogecoin price rose as some analysts predicted that Tesla was about to buy DOGE after moving $225 million worth of Bitcoins to unknown wallets. Elon Musk has promoted Dogecoin in the past and suggested it could be a possibility.

Dogecoin approaching key resistance Dogecoin price chart | Source: TradingView

DOGE has risen for three consecutive days and is at its highest point since September 30.

It increased the possibility of forming a golden cross formation by moving above the 50-day and 200-day Weighted Moving Averages. Dogecoin was up over 53% when it last formed this intersection in November.

Dogecoin also broke above the ascending trend line connecting the lowest volatility since August.

Therefore, further gains will be confirmed if the DOGE token breaks above the key resistance at $0.1318, the high on September 28. A move above this level will indicate more gains and the next reference level is $0.1440. June 21.