Key takeaways
- DOGE is up 6% in the last 24 hours as memecoins are showing signs of strength.
- The leading memecoin could rally towards the $0.22 resistance level in the near term.
Memecoins show signs of strength
The cryptocurrency market has been bullish over the past few days, with Bitcoin hitting the $106k level a few hours ago. Memecoins are showing signs of strength, suggesting that risk-on sentiment has returned among traders.
Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) are some of the biggest winners among the top 100 cryptocurrencies by market cap. Their performance comes amid rising retail interest in memecoins, with traders anticipating further gains in the near term.
The speculative nature of memecoins sees them gain additional interest from investors during recovery and bullish phases. Data obtained from CoinGlass reveals that the futures Open Interest (OI) of DOGE, SHIB, and PEPE have increased by 4%, 2% and 3%, respectively, in the last 24 hours, reaching $1.53 billion, $72.99 million, and $200.53 million.
This increase suggests that investors are increasing their exposure to risk-based assets such as Dogecoin.
DOGE eyes $0.22 amid bullish technicals
The DOGE/USD 4-hour chart is bearish and inefficient despite Dogecoin adding 6% to its value over the weekend. The leading memecoin is now trading around $0.18 after forming a double bottom reversal from $0.15704 support over the last few days.
The technical indicators on the 4-hour chart are also bullish, showcasing DOGE’s increased retail interest. The RSI of 63 is above the neutral 50 and could enter the overbought region if the bullish trend continues. The MACD lines are also within the bullish zone, suggesting a strong buying pressure.
If the memecoin continues with its recovery, it could test the 200-period EMA at $0.19386 before rallying towards the October 13 high of $0.22. However, failure to maintain the bullish momentum would see DOGE decline towards the $0.16886 level, which acted as the double bottom’s neckline.
