Today’s rise in DOGE price primarily results from buying signals on the Robinhood platform and a diminished appetite for the dollar.
On April 6, Dogecoin
DOGE
$0.18 price climbed 7.5% to $0.186, outperforming the broader crypto market, whose gains on the same day were 1.71%.
DOGE/USD vs. TOTAL crypto market cap daily performance chart. Source: TradingView
Dollar’s weakness boost risk appetite
Dogecoin’s price rally today mirrors bullish moves across the top-ranking memecoin, as shown below, indicating an increasing risk appetite among traders.
Memecoins performance on hourly and daily timeframes. Source: CoinMarketCap
The market perceives memecoins as among the most speculative investments within the cryptocurrency sector, primarily due to their minimal underlying value or practical utility. This perspective positions them at the pinnacle of risk, contrasting starkly with traditional safe-haven assets.
Simultaneously, the U.S. dollar, traditionally seen as a bastion of stability, is witnessing a depreciation in its value against a consortium of leading foreign currencies, a trend vividly illustrated by the U.S. Dollar Index (DXY) four-hour chart below.
DXY vs. DOGE/USD four-hour performance chart. Source: TradingView
The chart simultaneously reveals an emerging negative correlation between DOGE and the DXY, underscoring that the dollar’s weakening is momentarily bolstering the appeal of riskier memecoins, primarily on April 6.
Are DOGE whales accumulating?
Recent data disclosed by Whale Alert reveals that an unidentified wallet address ending in …wwKF has made a substantial acquisition of 199.27 million DOGE through two transactions within the last 24 hours.
The initial transaction saw the wallet purchasing 100 million DOGE, valued at $17.77 million, from Robinhood, followed by a second purchase of 99.27 million coins, equivalent to $17.68 million, from the same platform.
Dogecoin’s open interest and funding rates
The period of Dogecoin’s price rise has coincided with a sharp decline in its perpetual contracts’ open interest (OI) and funding rate.
Notably, the number of outstanding contract positions in the market has dropped to $1.38 billion on April 6 from its March 29 peak of $2.21 billion. It implies that traders are closing their positions, possibly due to various reasons such as taking profits, cutting losses, or reducing exposure.
DOGE futures open interest. Source: Coinglass
Meanwhile, its funding rate stands at 0.0172% as of April 6 — significantly lower when compared to its recent high of 0.106% on April 1. This situation often arises when fewer traders are willing to take or maintain long positions or when the market expects the price to stabilize or decrease.
DOGE funding rates. Source:
A falling OI and funding rates alongside rising price typically indicates that the selling pressure is decreasing as traders close their short positions, allowing the price to rise even with reduced trading volume and interest.
DOGE support confluence
From a technical perspective, DOGE’s price rise today originates from a support confluence at its 200-4H exponential moving average (200-4H EMA; the blue wave) and an ascending trendline — both at around $0.167.
DOGE/USD 4H price chart. Source: TradingView
The bounce from the support confluence is similar to what DOGE witnessed on March 19, which preceded a 85% rally toward $0.22
