Dogecoin price is shooting up, thanks to some recent developments from the Dogecoin Foundation, a shift in market trends, and a growing interest from investors.
The Dogecoin Foundation has recently announced the launch of the Official Dogecoin Reserve, aimed at improving the cryptocurrency’s long-term stability. As part of this initiative, the foundation purchased 10 million DOGE, worth around $1.8 million. This decision made public on March 24, is expected to encourage more institutional adoption of DOGE.
Crypto analysts suggest that this purchase could be a sign that larger financial institutions may soon enter the Dogecoin ecosystem. Speculation about a spot Dogecoin ETF in the U.S. is also rising, with crypto prediction platform Polymarket estimating a 72% chance of approval by the end of the year, up from just 27% at the start of January.
Dogeprice Chart: Source: CoinMarketCap
Altcoins Outperform Bitcoin as Investors Shift Strategies
Dogecoin gains are part of a larger rise in the cryptocurrency market where cryptocurrencies other than Bitcoin have seen stronger performance compared to Bitcoin. Investors are moving money from Bitcoin into riskier but potentially better-returning assets such as DOGE.
In the past 24 hours:
- The total altcoin market capitalization (TOTAL2) has grown by 1.60% to $1.08 trillion.
- Bitcoin’s market cap has fallen by 0.61%.
This shift is happening as global economic sentiment improves. Additionally, U.S. President Donald Trump’s recent remarks on trade policy have reduced fear of a possible trade war, boosting confidence in investors.
Futures Market Shows Growing Interest in DOGE
Traders in the Dogecoin futures market are showing increasing confidence in the coin’s price movement:
- Open interest (OI) in DOGE futures has jumped to $1.80 billion, recovering from a four-month low of $1.33 billion on March 11.
- DOGE’s weekly funding rates have turned positive at 0.157%, a shift from the negative levels seen on March 21.
- The rise in OI and positive funding rates suggests that more traders are taking long positions, indicating a bullish sentiment.
Technical Analysis: Will Dogecoin Hold Its Gains?
Some analysts warns that Dogecoin is still in a bear signal pattern, which frequently portends a future price decline, although today’s gain. Prices may fall 35% to about $0.117 if DOGE is unable to rise above the crucial resistance level of $0.214.
DOGE/USDT Price chart : Source: TradingView
However, DOGE may move closer to the 50-day Exponential Moving Average (EMA) close to $0.25 if it breaks above $0.214.
Final Thoughts
Positive economic trends, market changes, and regulatory actions are driving Dogecoin’s price increase. Investor morale is still high even though several technical signs point to a possible decline. Future market movements and significant technical breakouts will determine whether this rally persists or encounters opposition.
