Dogecoin jumps 18% as trade deal boosts crypto market activity – Crypto News – Crypto News
Connect with us
Dogecoin jumps 18% as trade deal boosts crypto market activity Dogecoin jumps 18% as trade deal boosts crypto market activity

Cryptocurrency

Dogecoin jumps 18% as trade deal boosts crypto market activity – Crypto News

Published

1 year ago

on

  • The US-UK trade deal lifted investor sentiment across digital assets.
  • At the time of writing on Friday, DOGE was trading at approximately $0.206.
  • Open Interest rose 18% to $2.17 billion, driven by long positions.

Dogecoin (DOGE) surged 18% this week, reclaiming the $0.20 mark after breaking above key technical levels on Thursday.

The rally follows a new trade agreement signed between the United States and the United Kingdom, which triggered bullish momentum across the crypto market.

DOGE’s upward move mirrors broader investor optimism, with market-wide recoveries helping it clear the 50-day and 100-day exponential moving averages (EMAs), historically strong resistance zones for the meme coin.

At the time of writing on Friday, DOGE was trading at approximately $0.206, having established a support base above $0.20.

The renewed interest was accompanied by a sharp rise in trading volume and derivatives activity, suggesting increased participation from institutional and retail traders.

Source: CoinMarketCap

$13 million in liquidations

Dogecoin’s rally sparked a wave of liquidations in the futures market, with approximately $13 million worth of positions wiped out in the past 24 hours.

According to Coinglass data, short liquidations made up the majority at $11.3 million, while longs accounted for just $1.6 million.

This imbalance indicates a textbook short squeeze, where a sharp price increase forces traders with bearish positions to exit rapidly, pushing prices even higher in the process.

Open Interest (OI) in DOGE futures also jumped by 18% to $2.17 billion, a sign of growing trader appetite.

The surge in OI, particularly from long positions, suggests market participants are positioning for further upside.

Binance’s long-to-short ratio of 2.4602 reinforces this trend, showing more traders betting on DOGE to move higher.

Volume activity added to the bullish confirmation. DOGE’s 24-hour trading volume spiked 74.49% to reach $4.5 billion, with elevated volume during an uptrend generally viewed as a confirmation of momentum strength.

Inverse head and shoulders targets $0.24 breakout

Dogecoin has broken out from a classic inverse head and shoulders formation, often seen as a bullish reversal signal.

The structure, observed on the daily chart, projects a potential 33% move from the breakout level, which puts the next price target at around $0.24.

The projection is based on the pattern’s height measured from the head to the neckline and applied above the breakout point.

Currently, DOGE is attempting to stabilise above the 100-day EMA at $0.20.

If this support holds, the bullish momentum is likely to continue into the next sessions.

The MACD indicator also shows positive divergence, with green histogram bars above the centreline pointing to increasing upward pressure.

However, traders should remain cautious. The RSI has reached 70.31, entering the overbought zone.

While this does not immediately signal a reversal, it often precedes short-term corrections.

Should DOGE retreat from current levels, the 50-day EMA at $0.18 may serve as a key support and re-entry zone.

Share this article
Categories
Tags

Related Topics:
Continue Reading

Trending