Dogecoin (DOGE) Price Skyrockets 45% as Elon Musk Teases “Department of Government Efficiency” (D.O.G.E.)

NOIDA (CoinChapter.com) — Dogecoin (DOGE) saw a notable price surge over the past week, climbing from around $0.123 to its current level of $0.179.

Dogecoin (CRYPTO: DOGE) price saw a remarkable surge over the past week, climbing from around $0.123 to its current level of $0.179. The rally has sparked increased interest among traders, with several factors driving speculation.

According to recent data from Coinglass, there has been a significant rise in DOGE's open interest, which indicates growing participation in the futures market. The rising open interest levels suggest that more traders are betting on substantial price movements.

A closer examination of the open interest chart reveals a steep increase from mid-October onward, when open interest soared from roughly $700 million to over $1 billion. This surge can be attributed to a large influx of traders expecting bullish outcomes.

Moreover, the surge in open interest typically correlates with increased volatility, which traders often interpret as a signal for potential price movements.

An analysis of the funding rate chart also indicates sustained bullish sentiment. The funding rate, which is a periodic payment made between traders based on the net long or short open interest in a futures contract, remains consistently positive.

This shows that long positions, traders who are betting on the price of the underlying asset to increase, are dominating the market, with traders paying a premium to hold their long trades.

Positive funding rates often suggest that market participants expect further price increases. Such an outlook aligns with the broader speculative interest in Dogecoin, partly fueled by Musk's involvement and upcoming macroeconomic events like the U.S. elections.

Among the key events mentioned in the report is Elon Musk's recent political involvement, which has been critical in fueling Dogecoin's rally.

During a Trump campaign rally, Musk teased the idea of a “Department of Government Efficiency” (D.O.G.E.), which sparked excitement in the Dogecoin community.

Following the event, Dogecoin saw an immediate 7% price jump, climbing past $0.13, its highest level since July. Musk's involvement with Trump, including a $75 million donation to the campaign, has intensified speculation that a Trump victory in the upcoming U.S. elections could further boost DOGE.

However, the DOGE USD pair's bull run encountered a pause on Oct. 30, with the memecoin dropping nearly 6% to reach a daily low of $0.164. A build-up of profit booking sentiment likely led to the plummeting Dogecoin prices.

Additionally, the relative strength index for Dogecoin had been overbought since Oct. 28. Despite Oct. 30's downtrend, the RSI remained overbought with a score of 71.68

Overbought RSI levels often precede trend reversals for an asset, so traders often consider the occurrence a sell signal.

If the downtrend continues, DOGE price risks a drop to the support level near $0.156. Moreover, breaching the immediate support level might force Dogecoin price to test the support near $0.134.

Conversely, a rally would likely see DOGE price rise to the resistance near $0.19, flipping which would set the memecoin on the path to challenge the resistance near $0.21 before corrections pare gains.

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