- SSince Elon Musk’s public statement, DOGE has been up and down.
- Dogecoin Open Interest has risen and other indicators point to a recovery.
On its 10th anniversary of existence, Dogecoin [DOGE] gave holders of the meme something to celebrate. The coin did this by moving higher, reaching $0.1 on December 6. This was the second time in 2023 that DOGE tapped that level.
The first time this happened was on April 4. But at that point, reaching the milestone was only temporary as the price retreated within minutes.
However, this season has been a bit different as DOGE has held on to its price before the recent retracement to $0.098 at the time of writing.
Dogecoin’s revival didn’t happen without other memes following in the same direction. The will of Pepe [PEPE]And Floki [FLOKI] also had their respective increases. But unlike the aforementioned cryptocurrencies, Dogecoin has come a long way.
DOGE is a “people’s crypto”
Dogecoin was introduced in 2013 as an open-source cryptocurrency by Billy Markus and Jackson Palmer. During that period, Palmer was a software engineer at Adobe, and Markus had the same role at IBM.
Markus and Palmer invented and launched Dogecoin in December as a “joke version” of Bitcoin [BTC]. This was one of the reasons why it used a Shiba Inu dog as its logo.
Moreover, the founders of the cryptocurrency did not expect the coin to be accepted quickly.
But two weeks after its launch, DOGE became popular on the social media platform Reddit, and at one point had more transactions than Bitcoin in its early stages. In 2014, Markus and Palmer left the development of Dogecoin to the community.
After that, not much happened with Dogecoin. But in 2019, Tesla CEO Elon Musk endorsed the cryptocurrency. He also revealed that he had supported Dogecoin developers behind closed doors before his revelation.
In April 2019, Musk posted about the meme on X (formerly Twitter), citing his support for DOGE. Then in February 2021, the head of SpaceX called DOGE the “people’s crypto.”
Dogecoin is the people’s cryptocurrency
— Elon Musk (@elonmusk) February 4, 2021
Posts like this were part of what made the coin one of the excellent artists of the 2021 bull market.
Source: CoinMarketCap
While Musk was accused of it manipulate the cryptocurrency was in his favor, the richest man in the world did not stop promoting the coin. Before the appointment of a new X CEO, Mush even hinted that his replacement would be a Dogecoin enthusiast.
Down but not out
AMBCrypto also reported how Musk changed the former Twitter logo to DOGE before the company rebranded as X. According to his All-Time Performance, the value of Dogecoin increased by 17,365.63%, according to CoinMarketCap data.
However, the coin is 91.42% off its ATH of $0.73. Despite the retreat from on high, the number of DOGE holders has grown. At the time of writing, there were 5.45 million holders of the coins.
By June 7, the total number reached 5 million, meaning that within six months another 450,000 people had joined the Dogecoin clan. As for the funding rate, AMBCrypto checked the data from the crypto analysis tool Santiment.
According to the information assessedDogecoin’s funding rate was 0.023%. This reading implies that most traders are optimistic on the coin price. If the coverage ratio had been negative, this would have suggested otherwise.
Source: Santiment
From a technical perspective, Dogecoin buying volume on December 6 was enormous. This spike, indicated by the sharp green bar, implies that the community seemed determined to properly celebrate the coin’s anniversary.
Either way, recovery is an option
However, there appears to have been some profit taking as DOGE fell to $0.0967. This statement was also reinforced by the accumulation/distribution (A/D) indicator, which had fallen to 27.10 billion.
The drop in the A/D value suggests that there has been an increase in distribution since accumulation peaked. Should the distribution continue, DOGE could fall below $0.0949, which was support that triggered the rise to $0.01.
Moreover, DOGE would only remain above $0.09 if the bulls defend other support at $0.0877. However, the Moving Average Convergence Divergence (MACD) showed that buying momentum could return soon.
Source: TradingView
But that will be the case if the MACD value rises above zero and sellers do not swap the 26-day EMA (orange) with the 12-day EMA (blue).
Another indicator to look at is the Open Interest. Open interest is the number of futures contracts left open by traders. It is also a sign of allocated liquidity that could influence the price action of a cryptocurrency.
Read Dogecoins [DOGE] Price prediction 2024-2025
At the time of writing, DOGE’s Outstanding interestsAccording to Coinglass, revenue rose to $628.39 million. In addition to the downtrend, the Open Interest is a sign of strength for the coin’s momentum.
If the Open Interest happens to remain high and DOGE’s move northward reverses, the coin could recover $0.01.
Source: Coinglass