Dogecoin Open Interest Spikes $42M in 3-Days as Traders Speculate on US Fed Rate Decision

Dogecoin Price Analysis:

Dogecoin price crossed the critical $0.10 level on Tuesday, Sept 10, up by 5% in the last 7 days, fresh inflows recorded in the derivatives markets suggests another leg-up towards $0.15 could be on the cards.

DOGE Price Surges 18% on Dovish US CPI Anticipation

Following a sluggish start to the September, crypto has posted an impressive  bullish reversal in the last 4-days. The positive momentum swing is linked to growing expectations of a US Fed rate cut following dovish figures posted in the latest Non-Farm Payrolls reports published on Sept 6.

Amid renewed investor optimism, major memecoins including Dogecoin (DOGE) and Shiba Inu (SHIB) and PEPE, have all received a major boost.

The chart above shows how that DOGE price has crossed the $0.10 mark at the time of writing on Sept 10, reflecting a 5.10% increase in the last 7-days.

A broader look at the memecoin sector trends shows that DOGE has now skipped ahead of the likes of SHIB and PEPE, booking subdued gains of 1.5% and 1.04% respectively.

When a mega cap asset like DOGE raced ahead of the broader market average, it signals aggressive buying momentum within the ecosystem.

Dogecoin Open Interest Crosses $480M as Bulls Gain Foothold

DOGE has grabbed headlines as it raced up the memecoin top gainer’s charts on Tuesday Sept 10. However, movements observed in the Dogecoin derivatives markets over the lasts 3-days suggests more upside could still follow.

Coinglass’ Open Interest chart tracks investor optimism by tracking  real-time changes in total capital invested in perpetual futures contracts for a particular cryptocurrency.

As depicted above, Dogecoin Open Interest rose from $442.4 million on Sept 7 to hit $484.9 million at the time of publication on Sept 10. The new inflows of $42 million represents a percentage increase of 9% in DOGE futures markets’ capital stock, while spot prices have only climbed 5% within the same period.

Typically, when open interest increases faster than prices uptick in the underlying spot markets, it presents a major bullish outlook.

It suggests that despite the 5% recovery over the last 3 days, DOGE price still has ample room for growth, before reaching a market saturation level where price action catches up to the spate of capital inflows.

Hence, the current bullish alignment between Dogecoin open interest and spot price action reflects growing confidence among bull traders, particularly those taking long positions ahead of the next US Fed rate decision.

If the Federal Reserve’s rate decision turns dovish or aligns with market expectations, the accelerated spate of $42 million open interst inflows could potentially propel Dogecoin price toward the $0.15 level in the weeks ahead.

DOGE Price Forecast: DOGE Expected to Cross $0.15 if US Fed Cuts Interest Rate

Currently, technical indicators show that Dogecoin price faces major resistance at the $0.000015 area. However, with open interest 14-day peak of $484 million on Sept 10, bears could struggle to avoid a Dogecoin price breakout towards the $0.20 area in the weeks ahead

As depicted in the chart below, the upper Bollinger band ($0.11226) acts as a significant short-term resistance, while the lower band ($0.09027) serves as the primary support. A breakout above $0.112 could push DOGE towards the $0.15 target, especially if the U.S. Federal Reserve signals an interest rate cut.

More so, Balance of Power (BOP) shows a bearish trend (-0.40), suggesting some short-term selling pressure. However, with volatility decreasing and a potential Fed pivot, bullish momentum may strengthen, targeting the $0.12 area first before testing higher resistance levels.

Should DOGE fail to break above $0.112, it risks falling back to test the $0.10 psychological support, with $0.09027 providing the next safety net