On March 28, Dogecoin DOGE $0.22 price soared 13.35% to reach $0.21, its highest level since January 2022. In doing so, the memecoin has outperformed most of its top-ranking rivals, including Bitcoin BTC
$70,764 and Ether ETH $3,568, on a 24-hour performance metric.
Let’s discuss the main factors driving the Dogecoin price upward today.
X payment integration prospects
Dogecoin’s gains are part of an overall recovery trend that has seen its price rebound 79.5% from its local low of $0.122 established on March 20. And it appears Elon Musk has been one of the main factors behind the sharp rise.
Notably, DOGE started recovering after Musk received three more money transmitter licenses from Illinois, New Mexico, and Oregon states in the U.S. to run a payment service on his X social media platform.
Last year, Musk applied for licenses in 32 states. He has received 23 approvals so far, according to NMLS Consumer Access. These approvals have been considered bullish for the Dogecoin market amid speculation that Musk would integrate DOGE into the X payment platform.
“Last year, Elon mentioned that the first phase of X Payments would not include crypto—I am not sure if this has changed now,” argues market analyst Mishaboar. However, he notes that Musk may bring cryptos like DOGE to X payments after collaborating “with some exchanges or brokerage platforms.”
Earlier this month, Musk expressed openness to accepting Dogecoin as a payment method for purchasing Tesla vehicles.
Dogecoin open interest hits record high
On March 28, open interest (OI) in Dogecoin futures perpetual contracts reached a record high of $1.77 billion, reminiscent of the feverish days of the 2021 rally.
Concurrently, the funding rate for Dogecoin perpetual futures contracts was 1.18% per week.
Together, positive funding rates and rising OI suggest that traders are generally optimistic about the asset’s future price direction, expecting prices to go higher.
This sentiment can lead to more buying pressure, potentially driving prices up if other market conditions align, which seems to be the case with Dogecoin’s upside moves today.
Dogecoin’s 2020 bullish fractal in play
Furthermore, Dogecoin’s price surge today aligns with a breakout movement anticipated by its bullish fractal pattern from 2020.
Notably, DOGE’s rise above its 0.236 Fibonacci retracement level at $0.18 is strikingly similar to a bullish move in December 2020, marked with a red circle in the chart below.
If the fractal plays out the same as it did in 2020, Dogecoin could rise toward its 1.00 Fib line at $0.59 in the coming weeks, up 160% from current price levels.
Analyst MikybullCrypto sees the DOGE price explosion continuing further above $0.59 due to a prevailing Adam-and-Even technical pattern.
“I’m aiming minimum of $1,” he predicts.
DOGE whales are accumulating
Dogecoin’s price gains and highly optimistic upside predictions correspond with the behavior of its richest investors — also known as “whales.”
Notably, the number of entities holding at least 1 million DOGE tokens has risen during the Dogecoin price rally in 2024, according to Messari data.
The accumulation trend is consistent among holders of at least 100,000 DOGE, with their numbers notably increasing throughout March.
This uptick in activity from large investors underscores their growing confidence in the Dogecoin market gains in the coming weeks.
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