Here is What’s Behind Dogecoin’s Recent Upward Momentum

Dogecoin (DOGE) has recently experienced a major rally, reaching a high near $0.17 - a level last seen in June.

Several factors seem to be fueling DOGE’s upward momentum, including technical indicators, growing derivatives interest, and surprising political support.

Elon Musk’s endorsement has played a significant role in this surge. His support of Trump’s re-election and a hint at a new Department of Governmental Efficiency (D.O.G.E.)—which Musk might oversee—has sparked widespread speculation and excitement.

Musk’s suggestion that such a department could save the U.S. up to $2 trillion added more fuel to the rally, especially as he updated his social media avatar to a DOGE icon.

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The data from derivatives markets is also strong, with Dogecoin futures volume grew significantly, and open interest increasing by 34% to $1.48 billion. Although some traders locked in profits, bullish sentiment remains high, as seen in Binance’s long-to-short ratio. On-chain metrics reveal an uptick in active DOGE addresses, which recently reached over 84,000, reinforcing positive sentiment.

Analysts are now speculating on DOGE’s potential for further gains, driven by a mix of high trading interest, Musk’s involvement, and consistent network activity. Some even suggest DOGE could see a significant rally if these factors continue to support its price trajectory

Kosta Gushterov