Several catalysts have emerged that point to a continuous upward momentum for the price of Dogecoin. This comes amid DOGE’s 26% gain at the start of the year, with the meme coin now looking to break above the $0.15 resistance.
Factors That Could Contribute To Sustained Dogecoin Price Growth
One of the factors pointing to the continued rise in Dogecoin prices is the recent inflows into DOGE ETFs. SoSoValue data show that the Bitwise and Grayscale funds saw net inflows on two out of three trading days this year. Namely, Dogecoin ETFs recorded an inflow of $2.30 million and $1.60 million respectively on January 2 and 5. These are the first consecutive daily net inflows since December 3 last year.
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Daily net inflows into DOGE ETFs indicate renewed interest among institutional investors in the meme coin, which is positive for Dogecoin price. DOGE could see continued growth if it continues to flow into these funds. Namely, a Bloomberg analyst noted Eric Balchunas that the 2x Dogecoin ETF had the best start to the year among all ETFs, up nearly 40%.
Furthermore, activity in the derivatives market is also supporting the continued growth of the price of Dogecoin. CoinGlass data shows that traders on top exchanges such as Binance and OKX are currently long. The long/short ratio on Binance is 2.06, well above 1. The long/short ratio for top traders on Binance is at 2.5, which is also a big plus.
Further data from CoinGlass also shows that derivatives trading volume rose more than 2% to $5.60 billion. However, open interest fell nearly 7% to $1.78 billion, likely due to market volatility as long positions were wiped out.
LONG eyes break above $0.15
Cryptoanalyst ZiP stated in an X post that on the daily chart Dogecoin price is currently reacting to local resistance at around $0.15. He further observed that if Resistance at $0.15 breaks, the next zone that DOGE price can target is around $0.24. The analyst noted that this is where the first significant Fibonacci level, measured since the entire bearish movement, is located.
Meanwhile, ZiP mentioned that an additional reference point is the daily pivot at $0.1288, which he noted defines the short-term equilibrium level of the market. Crypto analyst Trader Tarigrade revealed that the price of Dogecoin broke out of the bearish wedge, showing a strong upward momentum. Based on this, he predicted that DOGE is poised for a big jump, although he cautioned that the meme coin could make a brief comeback.
Related reading: Dogecoin price could rise to all-time highs if it breaks this resistance level
At the time of writing, the price of Dogecoin was trading at around $0.148, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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