Will Dogecoin price jump 10x to $3 soon?

Dogecoin (DOGE) has shown a notable surge amid a broader recovery in the cryptocurrency market.

DOGE is up almost 3% to $0.38 with daily trading volumes spiking by 18%, exceeding $4 billion.

This upward movement comes as DOGE’s technical chart shows patterns similar to those observed before its explosive bull run in 2021.

Crypto analyst Ali Martinez pointed out that Dogecoin began its second upward leg around January 25, 2021, following a 56% correction from its previous peak.

Similarly, after a 46% correction in recent weeks, DOGE’s current setup suggests it could be gearing up for another major breakout.

If historical patterns hold, the next significant rally for Dogecoin might begin as early as next week, reigniting investor interest.

Further supporting this bullish outlook, data from CoinGlass indicates a 6.3% increase in DOGE’s open interest, now surpassing $4.73 billion.

This surge in derivatives trading suggests heightened market interest and positions the meme coin for potential future gains.

DOGE price: rising interest and social media buzz fueling momentum

Dogecoin has successfully held above its crucial support level of $0.36, surpassing this resistance earlier in the week.

With Donald Trump’s inauguration approaching on January 20, speculative activity in the market has intensified, potentially giving Dogecoin an additional boost.

The ongoing rise in retail interest and social media buzz is adding fuel to the fire, especially as concerns over macroeconomic risks start to subside.

Dogecoin open interest shows growing confidence among traders

The increase in Dogecoin’s open interest is striking, with $570 million in new positions added over the last three days.

As of January 16, total open interest in DOGE futures stands at $4.73 billion, a 15% increase that outpaces DOGE’s 10% spot price gains.

This suggests that leveraged traders are positioning themselves for further upward momentum.

The faster rise in open interest compared to the price increase indicates that traders are confident in holding their positions, which could pave the way for Dogecoin to surpass the $0.40 resistance level in the coming days.

What it takes for Dogecoin price to reach $3

For Dogecoin to embark on a significant rally, it must first break through its immediate resistance at $0.40.

A successful breach of this level could trigger further gains toward $0.45, powered by the momentum of leveraged long positions.

Source: Investments CEO

However, failure to sustain above $0.35 could expose DOGE to potential bearish risks, such as profit-taking or leveraged position liquidations.

Some analysts, drawing parallels to Dogecoin’s past performance, believe that if the current setup mirrors 2021’s bull run, a rally toward $3 could be on the horizon.

As the market watches closely, Dogecoin’s next moves could set the stage for an exciting few weeks, with a potential 10x price jump sparking renewed investor enthusiasm.

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