Dogecoin’s (DOGE) price rebounded from its early May low of $0.12, showing noticeable recovery. Although DOGE remains below the $0.16 level, it could soon surpass this threshold.
Will Dogecoin’s Price Rise?
Dogecoin’s price appears to be trending upwards as investors begin to take long positions, resulting in a nearly $200 million increase in open interest over two days.
Open interest briefly represents the total number of outstanding derivative contracts at a given time, offering a forecast of market activity.
It also reflects the total volume of active positions and indicates market sentiment and liquidity status.
The increase in open interest can also be linked to a rise in short positions. However, considering the positive funding rate, the increase seems to be driven by long positions.
A rise in DOGE’s price could be imminent as recent recovery trends continue to be a topic among investors. It is also known that 83% of the total circulating DOGE supply is in a profitable position.
In the market, a higher profitability rate might indicate potential sales, typically occurring at market peaks. However, Dogecoin currently appears far from any peak.
For DOGE to reach such a point, a scenario where 95% of the supply is profitable would need to emerge.
What Will Dogecoin’s Price Be?
Dogecoin’s price is once again facing the $0.16 resistance level, which has been tested multiple times in the past. If this level is breached and becomes support, DOGE’s price could rise to $0.18.
Surpassing this resistance could trigger a 25% rally, potentially compensating for recent losses.
Conversely, if this resistance fails to break, Dogecoin’s price could fall to $0.15. Losing this support could drop the meme coin to $0.12, invalidating any bullish scenarios.
