Dogecoin (DOGE), the popular meme cryptocurrency, is seeing a major price surge, recently peaking at $0.17, a level not seen since early June. The coin has risen by 18% in the last 24 hours, and there are several contributing factors to this impressive rally. From Elon Musk’s ongoing influence to rising interest in derivatives and growing on-chain activity, DOGE is capturing the attention of traders and investors worldwide.
Elon Musk’s Role in Dogecoin’s Price Surge
A key driver behind Dogecoin’s surge is Tesla and SpaceX CEO Elon Musk. Known for his influence on the cryptocurrency, Musk’s support for former U.S. President Donald Trump’s re-election has fueled speculation that Dogecoin could play a part in a potential Trump administration. Trump hinted at a role for Musk in a proposed Department of Governmental Efficiency (D.O.G.E.), a name that mirrors Dogecoin’s ticker, sparking excitement among DOGE enthusiasts.
Musk’s recent use of a Dogecoin avatar and his statements about saving the U.S. $2 trillion annually through the department have only added to the speculation, propelling DOGE’s price momentum. Traders and investors are closely watching Musk’s actions, as his endorsements have historically driven significant price movements in the cryptocurrency market.
Derivatives Market Shows Increased Interest
In addition to Musk’s influence, Dogecoin’s derivatives market data highlights strong trading activity around the current rally. According to Coinglass, Dogecoin futures trading volume increased by 28% in the last 24 hours, while open interest surged by 34% to reach $1.48 billion, indicating aggressive bullish trading.
Options volume also saw a massive 138% spike, demonstrating heightened speculative interest. Although some traders have taken profits, leading to a 23.68% dip in options open interest, overall sentiment remains strongly bullish. Binance’s top traders have shown an especially positive stance, with a long-to-short ratio of 2.3847, suggesting further price gains may be on the horizon.
On-Chain Activity Reinforces Dogecoin’s Bullish Momentum
Dogecoin’s on-chain activity further supports its bullish outlook. Data from Santiment shows that active DOGE addresses have risen significantly over the past six months, reaching 84,306 as of October 2. This surge in network activity reflects sustained interest in Dogecoin, aligning with the broader upward trend in the market.
Analysts believe that if the current momentum continues, Dogecoin could experience further price increases. Some predictions suggest a potential 180% surge in the coming months, positioning DOGE for even greater gains.
Dogecoin’s Outlook: What’s Next for the Meme Coin?
With Elon Musk’s renewed involvement and growing interest in the derivatives market, Dogecoin’s rally