Published on juli 21, 2024, 12:26 am
Image source: Fox News
```json [ "TLDR: Dogecoin surges due to anticipation of interest rate cuts in September, potential positive stance on cryptocurrencies by Donald Trump if reelected. Recent increase by 5.75% to $0.13 is highest in a month. Factors like job growth report, Trump's optimistic remarks, and uptick in futures market contribute to the upsurge. Technical rebound observed after reaching lower trendline within rising wedge pattern suggests a climb towards $0.14 pre-Trump’s speech on July 27 with no investment advice given." ] ```
Dogecoin is currently experiencing a significant surge driven by the anticipation of interest rate decreases in September and the excitement surrounding a potential favorable stance towards cryptocurrencies from Donald Trump. The cryptocurrency market, including memecoins, is witnessing a resurgence propelled by various factors. One of the primary reasons for this upsurge is the growing likelihood of interest rate cuts in September.
Moreover, the enthusiasm in the market has been further fueled by the possibility of a pro-crypto position under Donald Trump’s leadership if he emerges victorious in the upcoming presidential elections in the United States. As a result, Dogecoin’s price has seen an increase of 5.75% over the past 24 hours, reaching $0.13, marking its highest value in a month.
The uptrend for Dogecoin commenced on July 13 following a report that revealed lower-than-expected job growth in the US, subsequently raising the probability of a 25 basis point interest rate reduction in September to 94%, up from 57.5% just a month ago. Lower interest rates are generally advantageous for non-yielding assets like cryptocurrencies, leading to Dogecoin’s price surge of over 40% since July 13, including today’s gains.
Furthermore, after an unsuccessful assassination attempt on former US President Donald Trump, there was an increased likelihood of his victory in the November election which added more momentum to DOGE’s rally. Trump’s recent positive remarks concerning cryptocurrencies have sparked optimism among investors. Consequently, his potential return to office is being viewed as a positive development for the crypto market and has significantly contributed to Dogecoin’s price increase.
Today’s rise in Dogecoin’s price coincides with an uptick in its open interest (OI) within the futures market, coupled with consistently positive funding rates. The number of unsettled Dogecoin futures contracts reached $603.10 million on July 20 – its highest point in two weeks. Concurrently, Dogecoin futures funding rates have turned positive at 0.231% per week from -0.546% two weeks prior.
The increase in OI signifies heightened interest and engagement within the market while positive funding rates suggest that traders are willing to pay extra to maintain long positions, indicating an optimistic outlook on Dogecoin’s price trajectory.
Today’s gains for Dogecoin are also part of a technical rebound that originated after its price retested the lower trendline within its prevailing rising wedge pattern which aligns closely with another crucial support defined by DOGE’s 50-4H exponential moving average (EMA) at approximately $0.12.
Rising wedges typically indicate bearish reversal patterns characterized by two ascending converging trends which conclude when the price breaks beneath the lower trendline resulting in a drop equivalent to the maximum distance between both trendlines.
In an ideal scenario, Dogecoin’s price could continue climbing until it reaches $0.14 prior to Trump’s keynote address on July 27 where he may elaborate on plans for crypto-friendly regulations if reelected as well as potentially announcing a Bitcoin strategic reserve policy akin to El Salvador’s recent initiatives.
It is essential to note that this article does not offer investment advice or recommendations; all investment decisions involve inherent risks and individuals should conduct thorough research before making any financial commitments related to cryptocurrencies or any other asset class within their portfolio.
Original article posted by Fox News
