Why Did Dogecoin Price Rise Today?

Dogecoin (DOGE) has increased by over 3.5% in the past 24 hours to $0.4075, in line with the overall cryptocurrency market recovery, up about 3.3% over the same period and reaching $3.32 billion. Data from Cointelegraph Markets Pro and TradingView shows that the price of DOGE has been highly volatile over the past two weeks, fluctuating between $0.35 and $0.45. Although DOGE is currently trading more than 15% below its multi-year high of $0.4808 on November 23, there are still some factors supporting the potential price increase of the world's largest memecoin.

DOGE rises along with other memecoins The psychology of rising prices is not limited to Dogecoin, but cryptocurrency prices are also rising across the meme coin sector in general, driven by the recovery of Bitcoin above $95,000. Shiba Inu (SHIB), the second largest meme coin by market capitalization, has followed in the footsteps of DOGE and increased by 3.6% in the past 24 hours to trade at $0.00002554. Pepe (PEPE), an Ethereum-based meme coin, has risen more than 6.5% in the past 24 hours to trade at $0.0000197.

Other large-cap memecoins, including Bonk (BONK) and Dogwifhat (WIF), based on Solana, have also recorded modest gains in the past 24 hours. Similarly, the total market capitalization of memecoins has increased by 5% in the past 24 hours and 94% since the beginning of the month, reaching $115 billion at the time of publication.

Meanwhile, the weekly memecoin trading volume across all blockchains, including Ethereum and Solana, has reached a total of $391 million for the week ending on November 22, a 157% increase from the $152 million in the first week of November, according to Dune's data. The total trading volume of all memecoins is approaching $55 million and stands at $54.75 billion at the time of publication.

DOGE Sponsorship Rate Soars The price increase of DOGE on November 28th was preceded by a sharp increase in the funding rate based on open interest. The chart below shows that DOGE's open interest funding rate increased to 0.025% on November 28th, up from the 0.0124% level seen two days earlier. This indicates high buying demand as DOGE's price recovers during the same period.

According to CoinGlass data, the open interest (OI) of DOGE is still high at $3.25 billion, although it has decreased from its all-time high of $3.77 billion recorded on November 23.

A higher open interest rate indicates that more money is flowing into the market, increasing the likelihood that the upward trend will continue. DOGE Price Nurtures the Shape V Recovery The price movement of DOGE since November 26 has nurtured the V-shaped recovery chart pattern on the four-hour chart, as shown below. The V-shaped recovery is a pattern of price increase formed when an asset undergoes a strong upward trend after a sharp decline. This pattern is completed when the price rises to the resistance threshold at the top of the V-shaped pattern. DOGE seems to be following a similar trajectory. Currently, it is trading in a crucial range between $0.3915 and $0.4050, where the 4-hour and 200-hour Simple Moving Averages (SMA) are currently located. This shows that increasing purchases from the current level may push the price of DOGE to complete the V-shaped pattern for trading at $0.4806.

Conversely, a close below the 50-day SMA will indicate that buyers are unlikely to sustain the recovery. This will cause the price to turn down to seek support from the 100 SMA at $0.915. This article does not contain investment advice or recommendations. Every investment and trading move carries risks and readers should do their own research when making decisions.

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