The Dogecoin price is showing signs of bottoming after forming a highly bullish chart pattern, and as the futures open interest has surged. DOGE, the biggest meme coin in crypto, is trading at $0.1782, up by almost 40% from its lowest level this month.
Chart Patterns Point to a Dogecoin Price Surge
The daily chart shows that the DOGE price has formed numerous patterns that may lead to a strong rebound in the coming weeks. It has formed an inverse head-and-shoulders chart pattern, a popular bullish reversal sign. This pattern is made up of a head ($0.1300) and two shoulders at $0.15.
Dogecoin price has formed a falling wedge chart pattern. This pattern consists of two descending and converging trend lines. It has already moved above the upper side of this pattern and retested it. A break and retest is a popular continuation sign.
The Relative Strength Index (RSI) has jumped and moved above the 50 neutral line. Similarly, the Bollinger Band Trend and the Awesome Oscillator have pointed upwards and are about to cross the zero line.
Therefore, the coin is set to surge, with an initial target of $0.2030, its lowest point in February. A move above that level will point to more gains to $0.2625, its lowest swing in December, up by 47% above the current level.
In an X post, Ali Martinez also noted that the DOGE price has formed an ascending triangle pattern on the hourly chart, pointing to more upside.
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DOGE Open Interest is Rising
Another bullish catalyst for the Dogecoin price is that the futures open interest has continued to rise this year. DOGE has an open interest of $1.85 billion, the highest level since March 27 this year.
The open interest has been on a steady increase after bottoming at $1.31 billion earlier this month. This interest is crucial as it indicates an upward trajectory in futures market demand.
The demand for Dogecoin is also increasing among large investors, also known as whales. Also, the coin will benefit now that Bitcoin price has staged a strong bull run and has moved above $90,000 for the first time since March.
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