Analysts are betting on a high possibility of a price rally for the largest meme coin in the cryptocurrency landscape, as market observers see that Dogecoin is gaining momentum and could be ripe for a price explosion.

Data shows that optimism on the meme coin grew, fueled by an uptick in the coin’s open interest and an ongoing price recovery that led the token to breach its resistance level.

Dogecoin Open Interest Hits $4.7 Billion

Analysts believe that Dogecoin could potentially experience a rally that would lead to the meme coin hitting the $0.39 level, saying that the token is currently on a recovery mode and gaining momentum.

One of the positive indicators that tell a possible upward trend for DOGE is open interest. Data show that there is growth in the open interest in the token.

According to CoinGlass, open interest in Dogecoin surged by nearly 10% in the last 24 hours, allowing the meme coin to hit $4.74 billion.

Meanwhile, a crypto analyst noted that the long-to-short ratio of 0.9964 might show a slightly higher number of bearish positions. Still, the token is on the positive side in terms of volume-weighted funding rate which has increased by 0.0098% — an indicator that investors are willing to pay a premium to maintain their bullish positions.

Overall, analysts are confident that the derivatives data points suggest that the upward movement for the largest meme coin would continue.

Remaining Above The Fibonacci Support Level

Crypto analysts noted that DOGE reached a price of $0.31385, which remains above its 23.62% Fibonacci support level. They highlighted that while DOGE initially faced strong bearish pressure, the token managed to recover and gain bullish momentum.

Market observers said that data indicated that the price of DOGE soared to near the 50% Fibonacci level, trading at $0.3675 and seeing a series of consecutive bullish candles.

Dogecoin climbed above the 200 EMA line and reached the 38% Fibonacci level, driving the higher likelihood of positive crossovers for the token.

Moreover, indicators highlighted that DOGE has reached its overbought boundary in its 4-hour RSI, supporting the chances that the token will continue to surge.

As of press time, Dogecoin is being traded at $0.3776 with a total market capitalization of $55 billion. DOGE is up 3.1% and 15.8% in the daily and weekly frames, data from Coingecko shows.

Is $0.39 Within Range?

Analysts suggested that many indicators are showing that Dogecoin is gaining strength which could propel it to $0.39 per coin.

DOGE continues to dominate its segment of the crypto landscape at about 50%, surpassing the psychological resistance level of $0.35.

Crypto observers noted a 5% increase in the altcoin market, another metric that could help Dogecoin with its upward trend.

Featured image from Cybernews, chart from TradingView