Whilst the broader crypto market consolidates, Dogecoin (DOGE) is heating up.
The crypto industry’s first and largest meme coin by market capitalization hit its highest level since April at $0.0877 on Friday, and despite pulling back to the $0.083s at the time of writing, is still up around 5% in the last 24 hours, as per CoinGecko.
That means that Dogecoin is the best-performing cryptocurrency in the top 20 by market capitalization on Friday, which shouldn’t be too surprising given the sudden surge in trading volumes seen on Friday.
According to Yahoo data, trading volumes have already exceeded $2.1 billion on Friday, the highest daily figure since April and up more than 10x versus late October’s lows, where daily trading volumes slumped as low as $200 million amid a lull in market activity at the time.
At current levels, DOGE is now up a stunning more than 40% from October’s lows in the $0.057 area, with other metrics besides the cryptocurrency’s price and trading volumes also showing a quickly heating up market.
As per crypto derivatives data analysis website Coinglass, the open-interest weighted funding rate of outstanding leveraged Dogecoin futures positions has been pushing steadily higher since mid-October, when the latest market recovery really got going.
This suggests stronger demand for long positions than short positions, as it shows that traders taking out leveraged long futures positions are paying an increasing funding premium to those taking out short positions.
Moreover, Coinglass data also shows that open interest of outstanding Dogecoin futures just hit its highest level since July at over $470 million, showing traders are placing bigger bets on the cryptocurrency.
While the Dogecoin market is certainly heating up, a strong argument can be made that the latest market rise hasn’t been driven by a short squeeze.
Coinglass data relating to futures position liquidations in the Dogecoin market shows that, while liquidations have spiked since Dogecoin started picking up in mid-October, it’s still mostly long bets that have been getting wiped out.
That could mean two things; 1) that Dogecoin could yet benefit from a more sustained short-squeeze to send its price higher and 2) that the risk of long-liquidation-fuelled pullbacks in the market are low, given overly aggressive long positions have seemingly been consistently getting wiped out amid Dogecoin’s latest price rally.
Price Prediction – Time to Buy?
Dogecoin has come a long way in recent weeks and, as such, some investors might be asking whether it is too late to buy the cryptocurrency.
Well, recent technical developments, as well as bullish broader crypto market themes, mean that Dogecoin price predictions are set to remain bullish, meaning it is probably still a good time to buy the cryptocurrency.
Chart analysis shows that Dogecoin broke out of a long-term pennant structure to the upside in early November after finding strong support at its 200DMA, a strong confluence of bullish technical indicators that signal a price risks are strongly tilted to the upside in the medium-term.
Bulls will likely be targeting a retest of 2023 highs at $0.1050 in the coming weeks/months.
Given that the broader crypto market looks set to remain strongly support by 1) optimism about upcoming spot crypto ETFs and 2) bets that the Fed’s tightening cycle is over, traders shouldn’t be surprised to see more Dogecoin upside in the near future.
Crypto Alternative to Consider – Meme Kombat ($MK)
Dogecoin offers great near-term upside prospects.
But meme coin degens who want a better probability of securing 10x gains should check out a newly launched utility packed meme coin called Meme Kombat.
Meme Kombat blends together the worlds of crypto gaming and gambling with its exciting platform were users are able to bet on the outcomes of exciting battles between characters based on some of the crypto world’s most popular meme coins.
Early $MK investors can also benefit from generous staking rewards, which are currently more than 100% annually.
The project has already raised close to $1.8 million, despite launching just weeks.
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