Dogecoin (DOGE) is riding the wave of recovery along with the broader cryptocurrency market, including memecoin, due to several factors, the most important of which is the increasing likelihood of a rate cut in September.
Moreover, if Donald Trump wins the US presidential election, the market enthusiasm will increase even more as support for cryptocurrencies is likely to grow under his leadership.
DOGE price rises on Trump event, expectations of rate cut
The price of DOGE has increased by 5.75% in the last 24 hours and is currently trading at $0.13, its highest price in a month.
The bullish trend of Mimecoin began on July 13 after a report showed weaker-than-expected U.S. jobs growth. The report raised the odds of a 25 basis point rate cut in September to 94% from 57.5% a month earlier.
Low interest rates are generally bullish for non-yielding assets like cryptocurrencies, which has contributed to the DOGE price surge of over 40% since July 13, including today’s gains.
DOGE’s rally gained further momentum after the failed assassination attempt on former US President Donald Trump, which increased his chances of victory in the November election.
Trump’s recent move to support cryptocurrencies has created optimism among investors. As a result, his potential return to power is seen as a positive development for the crypto market, contributing to a significant increase in the price of DOGE.
Related: Trump’s Vice Presidential Nominee JD Vance Could Mean a New Era for Cryptocurrencies
On July 27, Trump is scheduled to give a keynote speech at the Bitcoin 2024 conference, where he is likely to discuss his plans for crypto-friendly regulations if he is re-elected. In the crypto world, there is speculation that Trump will announce a Bitcoin strategic reserve policy, which would allow the US to convert some of its cash or gold reserves into Bitcoin, like El Salvador.
Dogecoin Open Trading Balance Rise to 2-Week High
Today’s DOGE price rally is accompanied by increasing open interest (OI) in the futures markets and consistently positive funding rates.
In particular, the number of outstanding DOGE futures contracts reached $603.1 million on July 20, the highest in two weeks. Meanwhile, the DOGE futures funding rate was positive at 0.231% per week, down from -0.546% two weeks ago.
A rising OI indicates increased interest and activity in the market. A positive funding ratio means that traders are willing to pay a premium to hold long positions, which reflects a more optimistic outlook for the DOGE price.
DOGE price rising wedge rebound in progress
Today’s DOGE rally is also part of a technical bounce that began after price retested the lower trendline of the dominant ascending wedge pattern. Interestingly, the lower trendline coincides with another key support level, around $0.12, defined by DOGE’s 50-4H exponential moving average (50-4H EMA; red wave).
A rising wedge is a bearish reversal pattern that is usually characterized by two rising and converging trends. It resolves after the price breaks below the lower trendline and moves the maximum distance between the upper and lower trendlines.
In a best-case scenario, the DOGE price could continue to rise until it reaches the wedge peak (where two trend lines meet) at $0.14 ahead of Trump’s July 27 keynote speech.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.