Dogecoin price rose by 4.5% on January 13, paring back some of the losses made in the past few days as several bullish patterns formed and as its futures open interest and spot market volume rose.
Summary
- Dogecoin rose by nearly 5% on Tuesday as crypto prices rebounded.
- Spot DOGE ETFs have added over $4.23 million in inflows this month.
- Technicals suggest that the token will likely rebound in the coming weeks.
Dogecoin (DOGE) token rose to $0.1425, up by ~25% above the lowest level this year. This rebound brought its market capitalization to over $23 billion.
The main reason why the DOGE price jumped is that investors embraced a risk-on sentiment after the US released the December consumer inflation report, which showed that the core CPI dropped from 2.7% to 2.6%. Traders also reacted to the release of the CLARITY ACT text ahead of Thursday’s markup.
Dogecoin price as demand for the two DOGE ETFs rose modestly. SoSoValue data shows that the cumulative inflows into Grayscale’s GDOG and Bitwise’s BWOW rose to $6.58 million, bringing their net assets to nearly $10 million. They have added $4.28 million in assets this month, a 2,290% increase from December’s $177k. The funds had $2.16 million in inflows in November.
Dogecoin price also rose as the futures open interest rose to over $1.7 billion from Monday’s $1.6 billion. Open interest has been in a slow uptrend since bottoming at $1.26 billion in November. Rising open interest is bullish, as it signals that investors are using leverage to buy. The volume in the spot market also jumped to over $1.1 billion.
Looking ahead, the next key catalyst for Dogecoin and other cryptocurrencies will be the Supreme Court’s decision on Donald Trump’s tariffs, which is expected on Wednesday. Crypto prices will also react to a potential strike on Iran by the U.S. military.
Dogecoin price technical analysis
The daily timeframe chart shows that Dogecoin has some solid technicals that may push it higher in the coming weeks or months. It has already flipped the Supertrend indicator from red to green for the first time since September last year.
The coin also formed a small bullish flag pattern, consisting of a vertical line and a descending channel. It has now moved above the upper side of the channel.
DOGE has also moved above the 25-day Exponential Moving Average, a sign that bulls are prevailing. It also formed a large falling wedge pattern between October and January 1.
Most importantly, it has entered the second phase of the Elliott wave pattern, followed by the bullish third phase.
Therefore, the token will likely continue to rise, with the primary target at $0.2095, its highest level on Oct.27, nearly 50% above the current level.
