Dogecoin Surges Amid Memecoin Mania Fueled by GameStop Saga Mastermind's Return
Summary:
Dogecoin (DOGE), the "joke" cryptocurrency, has grown by roughly 9.5% in 24 hours to hit $0.151 on May 14. This surge was part of a broader uptrend in the meme-based digital currency sector. Keith Gill's return, the orchestrator of the 2021 GameStop stock boom, reinvigorated interest in memecoins. Despite the surge triggering DOGE liquidations worth $5.59 million, traders continue to invest, boosting DOGE futures' open interest. If DOGE's price closes decisively above the neckline in the inverse-head-and-shoulders pattern, its target could reach around $0.227 in May.
The price of the cryptocurrency, Dogecoin (DOGE), has experienced an uptick, showing a growth of around 9.5% over the past day, hitting $0.151 as of May 14. This performance has surpassed the wider cryptocurrency market, which held an average return rate of approximately 2.75% over the same 24 hour period.
In an altering economy, with a strong focus on meme-based digital currencies, Dogecoin's price leap stems from a broader trend within the memecoin sphere. Other "joke" cryptocurrencies such as Shiba Inu (SHIB) and Pepe (PEPE) have also witnessed significant increases over the past 24 hours.
The resurgence of Dogecoin and other meme currencies is partially due to the unexpected reappearance of Keith Gill, the brain behind the 2021 GameStop stock boom, following a three-year interval. Known for his major role in the GameStop exploit during the pandemic, Gill's unforeseen return has reinvigorated interest in Dogecoin and Shiba Inu, citing a notable change in retail investor risk appetite.
This trend mirrors that of the GameStop stock phenomenon, which saw the value of the gaming company's shares more than double mere hours after Gill's return. This was a catalyst for the widespread rally in the memecoin sector.
In addition to the boost in currency value, Dogecoin's rise has triggered DOGE liquidations worth $5.59 million. This process requires Dogecoin traders who have borrowed and sold DOGE to reacquire it in order to cover their positions, further driving up the price.
Undeterred by these liquidations, traders continue to invest in the Dogecoin market. The open interest in DOGE futures has increased from approximately $718 million to over $807 million in one day, marking a significant increase in funding rates from 0.029% to 0.241% per week.
An increase in open interest denotes a rise in new positions, indicating burgeoning interest in the market. A positive funding rate generally reflects a greater demand for long positions compared to short ones, indicating a bullish market sentiment.
In a technical analysis, DOGE's gains are perceived as part of an inverse-head-and-shoulders (IH&S) pattern that develops when there are three consecutive troughs. If the price closes decisively above the neckline at around $0.166, DOGE's IH&S target could reach around $0.227 for May, a surge of 55% from the current price level.
On the other hand, if the price falls below the right shoulder's trough at around $0.135, it could lead to a decrease towards $0.122 in May, which has been a support level since March.
This news piece does not offer investment advice or recommendations. Every investment or trading move holds risks, and readers should undertake their own research prior to making a decision.
Published At
5/14/2024 9:52:18 AM
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