Why did Dogecoin price rise today?

Dogecoin (DOGE) price rose today as the broader cryptocurrency market underwent a sharp recovery.

DOGE price rose more than 5% in the last 24 hours, reaching an intraday high of $0.1409 on May 3, outperforming the cryptocurrency market, which rose about 3.63% during the same period. The price of MEMCOIN follows the recovery of Bitcoin (BTC), which is up nearly 8.34% over the past two days.

Let’s take a closer look at the most likely reasons behind Dogecoin’s recent rally.

Dogecoin Outstanding Interest Weighted Funding Ratio Flips Positively

According to data from Coinglass, DOGE’s open interest (OI) funding ratio flipped negative again on May 1 and May 2. The indicator is now back in positive territory and was sitting at 0.0067% on May 3, indicating an increasing preference for long positions.

These changes in market sentiment usually become evident after significant price movements, such as the 8.3% increase in the price of DOGE between May 2 and May 3.

The recent drop in DOGE’s OI below 0% marked its lowest level since October 2023. The price of Dogecoin is up 126% since October, and if a similar scenario plays out, DOGE could lead the memecoin to a sustained recovery.

The recovery of memecoin on May 1 was accompanied by DOGE short liquidations totaling $2.65 million compared to long liquidations of $537,550.

DOGE price recovery precedes network growth

An increase in network growth indicates 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 on-chain data analytics company IntoTheBlock, the number of active and new DOGE addresses has increased by 21.65% and 74.47% over the past seven days.

In a May 3 post from the X market intelligence company, Santiment shared the following chart:

“Here is the net change in non-empty wallets in #crypto’s market cap, sorted by greatest growth over the last 6 months.”

According to Santiment, the number of non-empty DOGE wallets has increased by 6.6 million, a 27% increase over the past six months.

This increase in network growth demonstrates growing investor interest in DOGE and demonstrates its continued recovery.

Related: Memecoins are rallying as Bitcoin recovers to all-time highs.

DOGE price rises due to increased trading activity

The dog-themed memecoin has seen a significant increase in trading volume over the past 12 hours, suggesting investor interest has been reignited.

Additional data from market tracker Coinglass shows spot trading volume increased 25% in the last 12 hours, reaching $1.15 billion.

The following heatmap provides a detailed analysis of trading activity, showing that Binance accounted for 16% of this volume, followed by OKX at 6% and Bybit at 3.6%.

The significant increase in trading volume signals renewed interest and activity in Dogecoin, suggesting that traders are closely monitoring price movements.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.