Dogecoin (DOGE) has seen a significant price surge today, climbing over 5% in the past 24 hours to reach an intraday high of $0.1409. This rally comes as the broader cryptocurrency market undergoes a sharp recovery, with Bitcoin and other major coins also posting strong gains.
The primary drivers behind Dogecoin’s latest price surge appear to be a combination of increased network activity, growing wallet balances, and a shift in market sentiment.
Positive Funding Rates and Short Liquidations
Data from Coinglass reveals that Dogecoin’s open interest (OI) funding rate has flipped positive, indicating an increasing appetite for long positions. This shift in market sentiment typically becomes evident after significant price movements, as seen with the 8.3% ascent in DOGE’s price between May 2 and May 3.
The recent recovery in DOGE’s price was also accompanied by short liquidations totaling $2.65 million, against $537,550 long liquidations, suggesting that traders were caught off guard by the memecoin’s resurgence.
Network Growth and Active Addresses
An uptick in network growth is a bullish signal for Dogecoin, as it indicates growing user engagement and adoption. According to on-chain data analytics firm IntoTheBlock, the number of active and new DOGE addresses has increased by 21.65% and 74.47% over the last seven days, respectively.
Furthermore, the number of non-empty DOGE wallets has increased by 6.6 million, a 27% growth over the last six months, as reported by market intelligence firm Santiment. This increase in network growth shows investors’ growing interest in DOGE, validating the ongoing recovery.
Surge in Trading Activity
Dogecoin has also experienced a significant increase in trading volume over the last 12 hours, suggesting that investor interest has been rekindled. Data from Coinglass shows that spot trading volume has increased by 25% over the last 12 hours to reach $1.15 billion, with Binance, OKX, and Bybit accounting for a significant portion of this activity.
The substantial increase in trading volume indicates renewed interest and activity around Dogecoin, as traders closely monitor the memecoin’s price movements.
Overall, Dogecoin’s latest price surge appears to be driven by a combination of positive on-chain metrics, a shift in market sentiment, and increased trading activity. As the broader cryptocurrency market continues to recover, Dogecoin’s performance will likely continue to be closely watched by investors and enthusiasts alike.
