Dogecoin price has shown strong signs of bottoming as it formed a highly bullish chart pattern and as the futures open interest has soared.

Dogecoin Chart Patterns Point to a Price Surge

The daily chart shows that the DOGE price may be setting up for a strong rebound in the coming weeks as it has formed several patterns that are popular signs of an upcoming rally. It has formed an inverse head and shoulders chart pattern, a bullish reversal sign. This pattern is made up of a head ($0.1300) and two shoulders at $0.15.

Dogecoin price has also formed a falling wedge chart pattern. This pattern consists of two descending and converging trend lines. It has already moved above the upper side of this pattern and retested it. A break and retest is a popular continuation sign.

The Relative Strength Index (RSI) has also jumped and moved above the neutral line at 50. Similarly, the BBTrend and the Awesome Oscillator have pointed upwards and are about to cross the zero line.

Therefore, the coin is set to surge, with an initial target of $0.2030, its lowest point in February. A move above that level will point to more gains to $0.2625, its lowest swing in December, up by 47% above the current level.

In an X post, Ali Martinez also noted that the DOGE price has formed an ascending triangle pattern on the hourly chart, pointing to more upside.

"Appears to be breaking out of an ascending triangle, with a potential upside target of $0.195!"

DOGE Futures Open Interest Hits 3-Month High

The other bullish catalyst for Dogecoin price is that the futures open interest has continued rising this year. DOGE has an open interest of $1.85 billion, the highest level since March 27 this year.

The open interest has been in a steady increase after bottoming at $1.31 billion earlier this month. This interest is crucial as it indicates an upward trajectory in futures market demand.

The demand for Dogecoin is also increasing among whales. Also, the coin will benefit now that Bitcoin price has staged a strong bull run and has moved above $70,000 for the first time since March.