Dogecoin has surged, reaching its highest price since May 2021 at $0.41 and breaking through a three-year resistance level. This 43.4% gain in 24 hours has pushed its market capitalization to $53 billion. Dogecoin’s strong performance comes as Bitcoin also reached a new all-time high of $89,561, and is outperforming other major cryptocurrencies.
Trading data shows a strong bullish sentiment, with long positions totaling over $320 million and short positions only at $20 million. The surge has led to profitable positions for most Dogecoin holders, with 95.25% of investors in profit. Trading volume has also increased, rising 26% in the past 24 hours, suggesting sustained buyer interest.
Technical analysis indicates Dogecoin may be entering an impulsive wave pattern, potentially reaching its previous all-time high of around $0.76 or even the symbolic $1 mark. Political speculation, with Elon Musk discussing a potential “Department of Government Efficiency” (D.O.G.E), has added another dimension to Dogecoin’s momentum.
The price surge has impacted derivatives markets, with DOGE-tracked futures experiencing a large liquidation event, and open interest approaching lifetime record levels. Dogecoin’s market capitalization has strengthened, placing it just below BNB in the rankings. A continued rally could see it surpass both BNB and Solana to become the fourth-largest cryptocurrency by market value.
The breakout has occurred across multiple technical indicators, and trading metrics show increased activity across major exchanges. The latest price action has triggered cascading liquidations of short positions, supporting the upward movement through a short squeeze effect. Despite reaching overbought conditions on some technical indicators, the rally has maintained momentum.
The most recent price of $0.4050 represents a clean break above previous resistance levels.
