Dogecoin Price Prediction as DOGE Becomes Best Performing Coin in the Market – Time to Buy?

As the broader crypto market consolidates, Dogecoin (DOGE) is heating up.

The cryptocurrency industry's first and largest meme coin by market capitalization hit its highest level since April at $0.0877 on Friday and, despite retreating to $0.083 at the time of writing, is still rising around 5% in the last 24 hours, according to CoinGecko.

That means Dogecoin is the best-performing cryptocurrency in the top 20 by market capitalization on Friday, which shouldn't be too surprising given the sudden spike in trading volumes seen on Friday.

According yahoo dataTrading volumes already surpassed $2.1 billion on Friday, the highest daily figure since April and more than 10 times higher than the lows of late October, where daily trading volumes fell as much as $200 million amid a pause in market activity at that time.

At current levels, DOGE is surprisingly up over 40% from October lows in the $0.057 area, and metrics other than the cryptocurrency's price and trading volumes also show a rapidly heating up market.

According to crypto derivatives data analysis website glass coinThe open interest-weighted funding rate of Dogecoin's leveraged futures outstanding positions has risen steadily since mid-October, when the latest market rally truly began.

This suggests stronger demand for long positions than short positions, as it shows that traders taking long leveraged futures positions are paying an increasing funding premium to those taking short positions.

Additionally, Coinglass data also shows that open interest for pending Dogecoin futures just hit its highest level since July at over $470 million, showing that traders are placing bigger bets on the cryptocurrency.

While the Dogecoin market is certainly heating up, a strong argument can be made that the market's latest surge has not been driven by a short squeeze.

Data from Coinglass related to liquidations of futures positions in the Dogecoin market shows that while liquidations have increased since Dogecoin began to recover in mid-October, they are still mostly long bets that have been eliminated .

That could mean two things; 1) that Dogecoin could still benefit from a more sustained short squeeze to push its price higher and 2) that the risk of market pullbacks driven by long liquidations is low, given that overly aggressive long positions have seemingly been steadily eliminated amid the latest Dogecoin price rally.

Price prediction: is it time to buy?

Dogecoin has come a long way in recent weeks and as such, some investors might be wondering if it is too late to buy the cryptocurrency.

Well, recent technical developments, as well as broader bullish themes in the crypto market, mean that Dogecoin Price Predictions They are expected to remain bullish, meaning it is probably still a good time to buy the cryptocurrency.

Chart analysis shows that Dogecoin broke out of a long-term pennant structure to the upside in early November after finding strong support at its 200DMA, a strong confluence of bullish technical indicators that indicate price risks are heavily tilted to the upside in the middle term.

The bulls are likely to aim to retest the 2023 highs at $0.1050 in the coming weeks/months.

Since it looks like the overall crypto market will continue to be heavily supported by 1) Optimism About Upcoming Crypto Spot ETFs and 2) bets that the Federal Reserve tightening cycle is overTraders should not be surprised to see more Dogecoin upside in the near future.

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Dogecoin offers great bullish prospects in the short term.

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