DOGE price is up today as on-chain data shows and uptick in network activity and Dogecoin wallet balances.
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Dogecoin (DOGE) price is up today as the wider crypto market undergoes a sharp recovery.
DOGE price has climbed over 5% over the last 24 hours to an intraday high of $0.1409 on May 3, outperforming the crypto market, which rose by around 3.63% in the same period. The memecoin’s price followed a recovery in Bitcoin (BTC) that has witnessed nearly an 8.34% ascent in the last two days.
Let’s take a closer look at the most likely reasons behind Dogecoin’s latest rally.
Dogecoin open interest-weighted funding rate flips positive
Data from Coinglass reveals that DOGE’S open interest (OI) funding rate flipped negative on May 1 and again on May 2. The metric is now back in the positive region and resting at 0.0067% on May 3, 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 drop in DOGE’s OI below 0% marked the lowest level since October 2023. Dogecoin’s price has risen 126% since October, and if a similar scenario plays out, DOGE could lead memecoins in a sustained recovery.
The memecoin’s recovery on May 1 was accompanied by DOGE short liquidations totaling $2.65 million, against $537,550 long liquidations.
DOGE price recovery is preceded by network growth
An uptick in network growth marks a bullish signal for Dogecoin. Network growth can be determined by the number of users interacting with the blockchain and can be measured using the number of active and new addresses.
According to the 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.
In a May 3 post on X market intelligence firm, Santiment shared the following chart saying,
“Sorted by greatest growth in the past 6 months, here is the net change of non-empty wallets among top market caps in #crypto.”
According to Santiment, the number of non-empty DOGE wallets had increased by 6.6 million, a 27% growth over the last six months.
This increase in network growth shows investors’ growing interest in DOGE, validating the ongoing recovery.
Related: Memecoins rally as Bitcoin recovers to all-time high
An uptick in trading activity boosts DOGE price
The dog-themed memecoin has experienced a significant increase in trading volume over the last 12 hours, suggesting that investor interest has been rekindled.
More data from markets tracker Coinglass shows that spot trading volume has increased by 25% over the last 12 hours to reach $1.15 billion.
The following heatmap gives a detailed breakdown of the trading activity, revealing that the volume on Binance accounted for 16% of this volume, followed by OKX with 6% and Bybit with 3.6%, among other exchanges.
The substantial increase in trading volume indicates renewed interest and activity around Dogecoin, suggesting that traders are closely monitoring its price movements.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
