Dogecoin Gets 62% Boost on Derivatives as Bulls Regain Control

• Dogecoin approaches $0.15, tacking on a high price correlation with Bitcoin.
• DOGE’s daily volume on Derivatives nears $2 billion amid reiterated interest.
• The top dog meme coin faces stiff competition from PEPE coin on Derivatives.

Dogecoin ( DOGE ) embarked on a micro rally to start the week, clinging 3%  to briefly approach $0.15 resistance. However, these gains have yet to provide the strength needed for DOGE to soar above $0.15.

Can Bulls Spurt DOGE Back to $0.20?

This particular price barrier is crucial for DOGE to clear on the way up, as 11.35B DOGE coins are held in 261.78K cryptocurrency addresses at an average price of $0.142. If Dogecoin surges past this support cluster, the next barrier between $0.149 and $0.181 consists of 13.31B Dogecoins split between 340.45K crypto addresses.

Judging from the volume held at the aforementioned price barriers, Dogecoin’s $0.20 price target could come into play if it continues to highly correlate with Bitcoin (BTC) and no extra sell pressure arrives. At the current Dogecoin price levels, the DOGE combined order book is favorable for crypto bulls, with $82 million in DOGE bids over the past 24 hours compared to $76 million in completed DOGE 24-hour sales.

DOGE Banks on the Rapid Hike in Derivatives

Alongside the high price correlation of 0.9 with BTC, another upside for Dogecoin is the 62% upswing in Derivatives trade volume. As depicted in the graph below, Dogecoin’s Derivatives market trading volume is nearing $2 billion, as both long and short DOGE traders partook in position placements that boosted the Open Interest (OI) rate by 4.86% over the past 24 hours.

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While the general long versus short DOGE position ratio is slightly on the short-selling side, it shall be noted that OKX customers are the most bullish on DOGE, on a 3.61 ratio between long and short positions. Secondly, long Dogecoin Derivatives traders on Binance outsource the short-sells more than twice, at a 2.0452 ratio based on DOGE positions.

While Dogecoin couldn’t gain the same popularity on Spot markets this Monday, the overall DOGE trading volume on Spot still exceeded $1 billion. DOGE’s Relative Strength Index (RSI) dwells around 50, which means that DOGE is neither in an oversold nor an overbought condition. Finally, a positive Chaikin Money Flow (CMF) index above 0.10 shows a renewed interest in trading the token on Spot markets.

On the Flipside

• While Dogecoin is the clear leader by global market cap in the meme coin department, Pepe Coin (PEPE) challenges its popularity in derivatives.
• According to the real-time on-chain data by CoinGlass, PEPE’s trading volume on Derivatives has breached $2B with a positive long versus short ratio at 1.0259.

Why This Matters

Dogecoin’s status as the second largest Proof of Work (PoW) blockchain aside from Bitcoin (BTC) puts the original memecoin at the top of the list of the most talked-about alternative currencies.

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