Dogecoin price made a strong bullish breakout as investors moved back to meme coins and as Bitcoin crossed $68,000.
Dogecoin (DOGE), the biggest meme coin, rose to $0.1283, its highest level since Sept. 29. It has moved into a bull market after rising by 56% from its lowest point in August.
DOGE’s rally occurred in a high-volume environment. Data from CoinGecko shows it had a 24-hour volume of $2.25 billion, the highest level in over two weeks.
A similar trend happened in the futures market, where open interest rose to over $768 million, its highest level since June 19. Higher open interest is often a sign of increasing demand for a cryptocurrency.
Dogecoin futures open interest | Source: CoinGlass
Dogecoin’s surge mirrored that of other meme coins, which have performed well in the past few weeks. Bonk (BONK) jumped by 14.2% in the last seven days, while Brett, Neiro, and Cat in a Dog’s World have soared by over 20% in the same period.
It also occurred as interest in cryptocurrencies bounced back. Bitcoin crossed the important resistance point at $68,000 for the first time in weeks. Additionally, investors are moving to Bitcoin, with spot ETFs recording $371 million in inflows on Oct. 16. These funds have now had a net inflow of over $19.7 billion since January.
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Meanwhile, Dogecoin price rose as some analysts predicted that Tesla was about to buy DOGE after moving Bitcoins worth $225 million to unknown wallets. Elon Musk has touted Dogecoin in the past, suggesting that this could be a possibility.
Dogecoin nears key resistance
Dogecoin price chart | Source: TradingView
DOGE has risen for three consecutive days and is hovering at its highest point since Sept. 30.
It has jumped above the 50-day and 200-day Weighted Moving Averages, raising the possibility that it will form a golden cross pattern. Dogecoin soared by over 53% the last time it formed this cross in November.
Dogecoin has also jumped above the ascending trendline, which connects the lowest swings since August.
Therefore, more gains will be confirmed if the DOGE token rises above the key resistance point at $0.1318, its highest point on Sept. 28. A move above that level will indicate more gains, with the next reference level at $0.1440, its highest level on June 21.
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