Dogecoin climbed nearly 3% to a two-week high of $0.073 before giving back the advance, as weaker U.S. inflation data boosted expectations for risk assets. The token last traded at $0.0713, up 0.81% in the past 24 hours, and held above the $0.07 support level. Open interest in DOGE derivatives jumped 10% during the move.
Why the price moved
The rally followed a softer-than-expected U.S. inflation report, which reinforced bets that the Federal Reserve could ease monetary policy later this year. Lower inflation typically lifts demand for speculative assets like cryptocurrencies, and Dogecoin was among the beneficiaries. The token's advance mirrored a broader uptick in digital assets, though DOGE's gain was more pronounced than many of its larger peers.
Support holds at $0.07
After peaking at $0.073, Dogecoin pulled back but stayed above the $0.07 level, which traders have watched as a key support zone. The token has repeatedly bounced off this price in recent sessions, suggesting buyers are willing to step in when it dips. The fact that DOGE closed the day above $0.07, even after giving back some gains, points to underlying demand at that level.
Open interest jumps 10%
Derivatives activity also picked up. Open interest in Dogecoin futures and options rose 10% over the same period, indicating that traders are adding positions rather than closing them out. The increase in open interest alongside a price rally often signals fresh money entering the market, though it can also raise the risk of volatility if positions get squeezed.
The next test for Dogecoin is whether it can sustain momentum above $0.07. A break below that level could trigger a pullback, while a push past the two-week high might open the door to further gains. Traders will be watching upcoming inflation data and broader crypto sentiment for direction.
