Dogecoin Price Analysis: Momentum Favors Further Gains

Technical analysis suggests a potential 33% increase in Dogecoin's price, reaching $0.23 in the coming days.

This rally is fueled by institutional investor interest in anticipation of altseason 2025.

Dogecoin (DOGE) saw a 2% increase in the past 24 hours, trading at approximately $0.1814 during the mid-North American session on Thursday. With a fully diluted market capitalization of around $26.9 billion and a 24-hour average trading volume of roughly $1.5 billion, it performed strongly amongst the top ten cryptocurrencies.

Reasons for Dogecoin's Price Increase

The price surge is largely attributed to a significant increase in Futures Open Interest (OI). Over the past two weeks, Dogecoin's OI jumped from approximately $1.3 billion to around $2 billion. Furthermore, increased whale activity, driven by fund managers like 21Shares aiming to launch a spot DOGE ETF, has contributed to the price rise.

Dogecoin's ecosystem boasts a strong online community, largely fostered by Elon Musk. Simultaneously, core developers are working on a major network upgrade to facilitate decentralized finance (DeFi) development, aiming to compete with other Layer 1 blockchains like Ethereum and Solana.

Dogecoin Price Analysis

Bitcoin's bullish momentum is positively impacting overall memecoin demand. The resurgence of Fear Of Missing Out (FOMO) trading has helped DOGE break free from a prolonged downtrend.

Daily chart analysis reveals a reversal pattern, featuring an inverse head and shoulders formation alongside a bullish divergence in the Relative Strength Index (RSI). The daily Moving Average Convergence Divergence (MACD) line is nearing a bullish crossover, indicating growing buyer control.

Consequently, DOGE is well-positioned for a rally towards $0.23 in the near term, with a potential target of $0.48 further down the line.