Dogecoin Price Eyes Breakout as Open Interest Surges 10%: Is $0.1 Next?

Dogecoin price rose 0.81% to $0.0713 within 24 hours as meme coin demand strengthened its short-term outlook.

DOGE climbed nearly 3%, reaching a two-week peak of $0.073 before giving back the advance. The token continued trading above $0.07, which remains a support level.

The weaker United States inflation data also enhanced the risk asset expectations. July headline inflation increased 0.1% monthly, while the annual rate slowed from 3.5% to 3.4%.

Core inflation rose 0.2% monthly and eased to 2.5% yearly, its lowest annual reading since February. September pause expectations thus surged to 64, in comparison to 45 a week ago and 30 last month.

Bitcoin price hovered above $63,700 and presented broader market support. DOGE could target $0.10 after securing a confirmed breakout above $0.073.

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Dogecoin Open Interest Rises 10% as Derivatives Activity Soars

The derivative trading of Dogecoin intensified with traders becoming more exposed to futures and options markets. The entire trading volume increased by 95.24% to $1.39 billion.

The open interest increased 10% to $1.27 billion, which means that new positions were added to the market. This growth is an indication that traders anticipate greater price swings of DOGE in the future.

The largest percentage change among the reported indicators was 318.05 in option volume. Nevertheless, turnover on options was low at 100.41.

The open interest of options also rose by 7.51% to reach 251890 within the period under measurement. The overall growth is an indication of new speculative attention to Dogecoin derivatives.

The increase in volumes and an open interest can assist in increasing volatility in the next trading sessions. But derivatives expansion does not ensure a continual price increase.

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Dogecoin Kumo Breakout Signals Bullish Momentum Ahead

Crypto analyst Trader Tardigrade marked two positive Ichimoku signals on the four-hour Dogecoin chart. DOGE has now burst out of the Kumo cloud, which it has been stuck in over 87 days. 

A bullish Kumo twist is also developing, if confirmed. Being above the cloud might build momentum, and a reversal might weaken the nascent breakout formation in subsequent trading sessions.

Will Dogecoin Price Rally Toward $0.075 Next?

The DOGE price surged to $0.07224 before retreating to $0.07073 during the latest four-hour session. 

Dogecoin is within a rising channel implying that the wider recovery framework is still in force. But the recent downward trend puts short-term emphasis on $0.070 support.

The RSI dropped to 50.98 with momentum weakened after reaching overbought levels. 

In the meantime, the MACD line is higher than the signal line at 0.00041 as compared to 0.00029. The positive histogram reading of 0.00012 still supports a cautiously bullish outlook.

Holding $0.070 could help the Future Dogecoin outlook retest $0.072 before targeting $0.0735. An even more powerful breakout can provide entry to $0.075. On the other hand, a loss of $0.070 may reveal $0.068 as the next level of support.