Dogecoin [DOGE], like other OG memecoins, registered double-digit gains in the last 24 hours. Pepe [PEPE] led them with 19%, while Dogecoin and Shiba Inu [SHIB] came second with 10% gains each.
The price performance of the three OG memecoins often reshapes the trajectory of the whole sector. This time too, the memecoin sector’s market cap grew by over 5.37% as the total trading volume hiked by 189% to about $4.14 billion.
However, Dogecoin’s rally partly stemmed from fundamental reasons, in addition to a broader market resurgence.
Key drivers of Dogecoin’s double-digit surge
The resurgence in risk-on sentiment across the globe favored DOGE as the U.S Treasury doubled its long-term bond buyback. This move injected liquidity into the market, weakening U.S Dollar pegs. As a result, DOGE, which is a base asset, rallied higher.
The memecoin emerged as among the most traded tokens, with daily token trading volume jumping by 3.5x to around $1.28 billion. In fact, its daily volume was equivalent to more than half the weekly sum traded.
Additionally, DOGE has been seeing more real-world adoption, which could improve its trading activity. The memecoin recently gained access to the Paxos network used by PayPal and Venmo. This could give more exposure to payment infrastructure already connected to the platforms aforementioned.
However, DOGE Spot ETFs have remained inactive since a net outflow of $564K on 13th August. This implied that institutional capital was minimal, leaving Dogecoin and other memecoins to speculative traders.
Can DOGE bulls turn $0.08 into support?
On the charts, Dogecoin broke a major trendline it had held since May. Moreover, it cleared a 4-hour trendline resistance, including its point of origin.
At the time of writing, the price action had also seen a bullish MA Cross as traders continued to buy. The CVD was up with more than 132 million DOGE bought during a single 4-hour session.
The Funding Rates also looked green and have been so since 5th August. This indicated that bulls have been paying a premium to keep their long positions open.
As it stands, the memecoin is trading above the $0.0750-level, where it faced some difficulties. However, DOGE is still to breach the next significant supply zone on the charts.
Breaching this supply zone will be key to determining the scale of Dogecoin’s bullishness.
Final Summary
- Dogecoin’s price broke out as all OG memecoins, including Shiba Inu and PEPE, pulled 10%+ gains.
- DOGE’s sharp uptick needs to flip next supply zone into support to confirm a bullish market structure shift.
