- Since Elon Musk’s public declaration, DOGE has gone up and down.
- Dogecoin’s Open Interest jumped and other indicators suggest a recovery.
On its 10th anniversary of existence, Dogecoin [DOGE] gave holders of the meme something to celebrate. The coin did this by running upwards and reaching $0.1 on the 6th of December. This was the second time throughout 2023 that DOGE tapped that level.
The first time it did was on the 4th of April. But at that time, hitting the milestone was only momentary as the price pulled back in a matter of minutes.
However, this season was a little different as DOGE held on to the price before its recent retracement to $0.098 at press time.
Dogecoin’s uptick did not happen without other memes following in a similar direction. The likes of Pepe [PEPE], and Floki [FLOKI] also had their respective increases. But unlike these cryptocurrencies mentioned, Dogecoin has come a long way.
DOGE is a “crypto of the people”
Dogecoin was introduced as an open-source cryptocurrency in 2013 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 ideated and launched Dogecoin in December as a “joke” version of Bitcoin [BTC]. This was one of the reasons it used a Shiba Inu dog as its logo.
Furthermore, the founders of the cryptocurrency did not expect the coin to gain quick acceptance.
But two weeks after its launch, DOGE gained popularity on social media platform Reddit, and at one point had more transactions than Bitcoin in its early stages. In 2014, Markus and Palmer left Dogecoin’s development 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 been supporting Dogecoin developers behind closed doors before his disclosure.
In April 2019, Musk posted about the meme on X (formerly Twitter) citing his support for DOGE. Then, in February 2021, the SpaceX head called DOGE the “people’s crypto.”
Dogecoin is the people’s crypto
— Elon Musk (@elonmusk) February 4, 2021
Posts like this were part of why the coin was one of the outstanding performers of the 2021 bull market.
Source: CoinMarketCap
While Musk was accused of manipulating the cryptocurrency to his favor, the richest man in the world did not stop promoting the coin. In fact, before the appointment of a new X CEO, Mush hinted that his replacement would be a Dogecoin lover.
Down but not out
AMBCrypto also reported on how Musk changed the former Twitter logo to DOGE before the company rebranded to X. Per its All-Time Performance, Dogecoin’s value has increased by 17,365.63%, according to CoinMarketCap data.
However, the coin is 91.42% down from its $0.73 ATH. Despite the drawdown from the heights, the number of DOGE holders has been growing. At press time, there were 5.45 million holders of the coins.
As of the 7th of June, the total number was 5 million, meaning that an additional 450,000 had joined the Dogecoin clan within six months. Concerning its funding rate, AMBCrypto checked the data provided by crypto analysis tool Santiment.
According to the information assessed, Dogecoin’s funding rate was 0.023%. This reading implies that most traders are bullish on the coin price. If the funding rate was negative, then it would have suggested otherwise.
Source: Santiment
From a technical perspective, Dogecoin’s buying volume on the 6th of December was immense. This spike indicated by the sharp green bar implies that the community seemed determined to have a good celebration of the coin’s birthday.
Recovery is an option either way
However, there seems to have been some profit-taking as DOGE moved down to $0.0967. This assertion was also reinforced by the Accumulation/Distribution (A/D) indicator which had reduced to 27.10 billion.
The decrease in the A/D reading suggests that there has been a surge in distribution since accumulation hit a peak. Should the distribution continue, DOGE might drop below $0.0949 which was a support that triggered the rise to $0.01.
Also, DOGE would only remain above $0.09 if bulls defended other support at $0.0877. However, the Moving Average Convergence Divergence (MACD) showed that the buying momentum may return soon.
Source: TradingView
But that will be the case if the MACD reading pumps above the zero midpoint and sellers do not flip the 26-day EMA (orange) over the 12-day EMA (blue).
Another indicator to look at is the Open Interest. The Open Interest is the number of futures contracts left open by traders. It is also a sign of liquidity allocated that could impact the price action of a cryptocurrency.
Read Dogecoin’s [DOGE] Price Prediction 2024-2025
As of this writing, DOGE’s Open Interest had increased to $628.39 million, according to Coinglass. Alongside the downward trend, the Open Interest is a sign of strength for the coin’s momentum.
If by chance the Open Interest stays high and DOGE’s movement reverses northward, then the coin may reclaim $0.01.
Source: Coinglass
