Dog-themed meme cryptocurrencies, Dogecoin (DOGE) and Shiba Inu (SHIB), are capturing significant market attention. Both assets have stabilized at crucial price levels following a robust double-digit rally in the preceding week. Recent derivatives data points to a bullish outlook, with a notable increase in Open Interest (OI) signaling growing investor confidence and fresh capital entering the market.
This influx of new money into futures contracts is widely considered a strong catalyst for potential upward price movements.
Rising Open Interest Fuels Market Optimism
The Open Interest in Dogecoin futures has seen a substantial climb, from $2,73 billion last Thursday to $5,35 billion by Tuesday, according to CoinGlass data. This marks DOGE‘ highest OI level since January 20, underscoring renewed investor engagement.
Similarly, during the same period, Shiba Inu’s OI surged from $215,87 million to $328,49 million, reaching levels not observed since early February. An increasing Open Interest typically signifies that new funds are flowing into the derivatives market, which can amplify existing price trends.
Furthermore, funding rate data for both assets has shown a positive shift and a significant spike. Readings of 0,033% for DOGE and 0,023% for SHIB indicate that long positions (investors betting on price increases) are actively paying short positions (those betting on price declines). Historically, pronounced positive spikes in funding rates have often preceded sharp rallies in the prices of both DOGE and SHIB.
Dogecoin Price Forecast: Can Momentum Be Maintained?
Dogecoin’s price broke above a descending trendline last Friday, initiating a 15,11% rally over the subsequent two days and closing above the daily resistance at $0,24. As of Tuesday, DOGE is trading slightly lower, around $0,26.
Should the daily level of $0,24 hold firm as support, DOGE could extend its rally towards the next daily resistance at $0,31. However, the Relative Strength Index (RSI) on the daily chart stands at 78, suggesting an extreme overbought condition that traders should approach with caution. Conversely, the Moving Average Convergence Divergence (MACD) indicator on the daily chart confirmed a bullish crossover at the end of June, with rising green histogram bars indicating strengthening bullish momentum.
DOGE/USDT daily chart
Nevertheless, a close below the $0,24 daily support could lead to a retracement, finding support around the trendline breakout level at $0,22.
Shiba Inu Price Forecast: Eyeing Further Gains
Shiba Inu’s price closed above its 200-day Exponential Moving Average (EMA) at $0,000014 on Friday, subsequently rallying by 5,45% over the next three days. Currently, SHIB is trading slightly down at approximately $0,000015.
If the 200-day EMA at $0,000014 holds as a stable support, SHIB could extend its rally towards the May 12 high of $0,000017. Similar to Dogecoin, SHIB’s RSI indicates an overbought condition, while the MACD suggests the continuation of bullish momentum.
SHIB/USDT daily chart
Conversely, if SHIB experiences a correction and closes below the 200-day EMA, it might seek support around its daily level at $0,000013.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
