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

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.