Why is Dogecoin (DOGE) price up today?

Dogecoin (DOGE) price has jumped by approximately 7% in the last 24 hours to reach $0.181 on March 25. The memecoin was trading for $0.189 at its intraday top, its highest level in almost two weeks.

Key factors driving the DOGE prices higher today include:

• A DOGE reserve initiative undertaken by the Dogecoin Foundation

• Risk appetitive recovery on easing trade war fears.

• A classic flag pattern on the DOGE price chart.

Dogecoin Foundation buys 10 million DOGE

DOGE’s ongoing price rise coincides with the launch of the Official Dogecoin Reserve, a move designed to stabilize the memecoin and boost institutional confidence.

Key points:

• On March 24, the Dogecoin Foundation revealed the creation of the “Official Dogecoin Reserve” aimed at supporting DOGE’s long-term price stability and credibility.

• As part of the initiative, the foundation has purchased 10 million DOGE worth around $1.80 million.

• The Foundation’s strategic DOGE purchase occurs at a time when traders are closely watching signs of institutional entry into the memecoin sector, particularly with the potential launch of spot Dogecoin ETFs in the US.

• As of March 25, crypto betting platform Polymarket was showing 72% odds in favor of a Dogecoin ETF launch by the year’s end, up from 27% on Jan. 1.

Altcoins are outperforming Bitcoin amid risk rally

Dogecoin’s gains today appear alongside a broader altcoin market rally led by easing trade war tensions.

Key takeaways:

• Meanwhile, Bitcoin’s market cap has declined 0.61% in the same period.

• It shows that traders are rotating capital from Bitcoin into altcoins like Dogecoin.

• The divergence appears amid signs of easing trade war tensions.

• On March 24, US President Donald Trump signaled twice that trading partners would receive possible exemptions or reductions.

• Investors embraced higher-risk assets amid improving macro sentiment, favoring riskier altcoins over safer bets like Bitcoin.

• Memecoins often attract retail-driven hype during altcoin rallies, as shown below via the performance of top-ranking joke cryptocurrencies on a 24-hour adjusted timeframe.

Related: Dogecoin millionaires are buying dips as DOGE price eyes 30% rally

Relatively higher speculation is also visible in the Dogecoin Futures market, wherein DOGE open interest (OI) and funding rates are climbing.

What to know:

• As of March 25, DOGE’s OI in the futures market was around $1.80 billion, up from the March 11 low of $1.33 billion, the lowest in four months at the time.

• DOGE’s weekly funding rates at the same time have climbed to 0.157% from negative levels on March 21.

• Rising DOGE open interest and positive funding rates indicate growing demand for leveraged long positions, reflecting bullish sentiment.

Dogecoin is bouncing with a bear flag channel

Dogecoin’s price gains today appear to be a part of its prevailing bear flag pattern.

Key takeaways:

• A bear flag pattern forms when the price consolidates higher inside a rising parallel channel after undergoing strong declines.

• As a technical rule, the pattern resolves when the price breaks below the lower trendline and falls by as much as the previous downtrend’s height.

• As of March 25, Dogecoin was consolidating inside the flag channel, with its recent bounce occurring after testing the lowest trendline as support.

• However, its overall bias remains skewed to the downside, providing it breaks below the flag’s lower trendline next.

• Should it happen, DOGE price can decline toward the technical downside target at around $0.117—down approximately 35% from the current price levels—by April.

• Conversely, a breakout above the flag’s upper trendline will likely invalidate the bearish setup, sending DOGE’s price toward the 50-day EMA (the red wave near $0.214) instead.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.