Signal
Dogecoin stabilized at $0.27 on Tuesday after a 38% rise last week.
Shiba Inu has surpassed critical resistance, indicating an upward trend.
Derivatives data for both DOGE and SHIB show an increase in open interest, indicating investor optimism.
After achieving double-digit gains last week, Dogecoin (DOGE) and Shiba Inu (SHIB) are consolidating around significant levels. With open interest (OI) rising, the derivatives data for both meme coins indicate further increases, showing investor confidence.
DOGE and SHIB may rise as derivatives data favors the bulls.
According to CoinGlass, the open interest for Dogecoin futures contracts rose from $2.73 billion on Thursday to $5.35 billion on Tuesday, the largest amount since January 20.
Similarly, SHIB's open interest rose from $215.87 million to $328.49 million, levels not seen since early February.
The increase in open interest suggests new money entering the market and buying, which could lead to price increases for Dogecoin and Shiba Inu.
Positive funding rate statistics enhance the outlook for dog-based meme coins. The chart below shows that long positions are pushing short positions as the metric shifted to a positive rate, rising for both meme coins, with DOGE at 0.033% and SHIB at 0.023%. DOGE and SHIB have risen significantly as funding rates increased.
On Friday, Dogecoin's price broke above the descending trendline (formed by connecting several peaks since early December). The following two days saw a 15.11% increase, closing above the $0.24 barrier daily. On Tuesday, it is trading slightly lower at $0.26.
DOGE could rise to $0.31 if $0.24 is supported.
If DOGE retraces and closes below its daily support at $0.24, it could drop to the trendline breakout level at $0.22.
Price prediction: SHIB could rise if the 200-day exponential moving average continues.
On Friday, Shiba Inu closed above the 200-day exponential moving average at $0.000014 and rose by 5.45% over the next three days. On Tuesday, it is trading slightly lower at $0.000015.
The 200-day exponential moving average around $0.000014 could help propel SHIB to its peak on May 12 at $0.000017.
