Dogecoin traders spotted moving $251M after Coinbase’s latest announcement

FXEmpire.com -

Dogecoin (DOGE) price surged to a peak of $0.16 on Thursday March 21, after a frenetic 31% rally within the 24-hour timeframe. Vital market metrics suggests that traders expect the recent announcement from Coinbase to drive up DOGE prices even further.

With the bull speculators already piling on LONG bets, how high can DOGE price reach?

Dogecoin open interest crosses 1 billion mark on Coinbase listing news

On March 20, Coinbase announced plans to launch a DOGE futures trading option on it derivatives platform. Other mega-cap Proof of Work altcoins including Litecoin (LTC) and Bitcoin Cash (BCH) were also included in the filling to the Commodities and Futures trading Commission (CFTC).

Early markets reaction shows that Dogecoin holders have reacted positively in high hopes that DOGE listing on Coinbase derivatives trading platform could lead to increased capital inflow.

Dogecoin (DOGE) Open Interest vs. Price | Source: Coinglass

When the news broke on March 20, 2024, Coinglass data shows that Dogecoin open interest stood at $918.9 million. In an almost instant reaction, DOGE traders have increased the capital stock by $251 million, as the open interest value surged to 1.23 billion at the time of writing on March 22.

The timing of this increase in Dogecoin open interest is a clear indication that the Coinbase plans to launch DOGE futures has triggered a bullish reaction among investors.

In Coinbase’s filing with the CFTC, the exchange intends to start trading DOGE futures as early as April 1. As the largest crypto exchange in the USA, the official listing of DOGE futures is expected to deepen Dogecoin adoption and attract more market participation in the coming weeks.

If this positive scenario plays out, DOGE holders can anticipate a price upswing toward $0.2.

Dogecoin Price Forecast: $0.20 target in firm focus

Evidently, the early market reaction to Coinbase’ plans to launch DOGE futures puts Dogecoin price in prime position for another leg-up in the days ahead.

However, after a 34% rally in the last 48 hours, DOGE could experience some push back from the bears as they price edge closer to $0.2.

The upper-limit of the Bollinger band technical indicator highlights that the bears could mount a significant sell-wall at the $0.19 territory.

Dogecoin (DOGE) Price Forecast | March 2024 | Source: TradingView

But if Coinbase’ DOGE futures launch on April triggers new market participants and sizeable capital inflows as predicted, the Dogecoin price could experience a parabolic breakout toward $0.3.

In the event of a bearish downturn, the bulls can regroup around the 20-day SMA at $0.14 to stage an early rebound.

This article was originally posted on FX Empire

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