Dogecoin (DOGE) is among the best cryptocurrency market performers today, beating top-ranking rivals like Bitcoin (BTC) and Ether (ETH), as traders’ focus turns to a flurry of optimistic updates, including Elon Musk’s cryptic tweet mentioning the memecoin’s official ticker.
Elon Musk’s tweet sends Dogecoin higher
DOGE’s price has risen by around 3% in the last 24 hours, reaching $0.106 on Sept. 13.
The gains today are part of a rally that started six days ago, when Dogecoin’s long-term supporter, Elon Musk, floated the idea of establishing himself as the head of a new government institution called DOGE, an acronym for Department of Government Efficiency.
Since the tweet, the DOGE price has rallied by 16.25%, reminiscent of the memecoin’s price booms in the past. This suggests that many traders are still eager to capitalize on Musk’s influence, betting on short-term price gains.
Dogecoin’s rising OI, funding rates swing bullish
Dogecoin’s gains today and in the past six days further accompany a decent rise in its open interest (OI) and funding rates in the futures market.
According to Coinglass data, DOGE Futures’ OI has increased from $442.37 million on Sept. 7 (when Musk mentioned Doge in his X post) to $459.18 million on Sept. 13.
Meanwhile, DOGE’s funding rates have flipped from extremely negative to positive in the same period. As of Sept. 13, they had climbed to 0.14% per week from 0.21% per week six days ago.
The rise in OI and the flip to positive funding rates suggest a shift toward bullish sentiment in the DOGE futures market following Musk’s D.O.G.E. tweet.
Dogecoin’s falling wedge pattern at play
DOGE’s gains today are part of a technical rebound occurring inside its prevailing falling wedge pattern.
Related: Ditch the memecoins — They won’t motivate the next bull run
On Sept. 7, the memecoin tested the wedge’s lower trendline as support, akin to its multiple rebound moves since March. It now faces stiff resistance in its 50-day exponential moving average (50-day EMA; the red wave) at around $0.106.
A decisive close above the 50-day EMA can send the DOGE price toward the wedge’s upper trendline near $0.108. As a rule, a breakout above the upper trendline can push the price by as much as the wedge’s maximum height.
In other words, DOGE’s price target is $0.193 by the year’s end if the falling wedge breakout plays out as intended.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
