Dogecoin price opened trading at $0.38 on Saturday, January 4, up 25% since Elon Musk’s recent X profile updates stirred the global crypto community on December 31. With capital inflows outpacing price movements, can DOGE flip the $0.40 resistance?
Dogecoin Emerges Top-gainer as Markets react to Elon Musk’s X profile update
Dogecoin has outperformed all of the top 10 cryptocurrencies this week as the global crypto markets made a positive start to 2025. Notably, the memecoin sub-sector attracted significant investors’ interest amid the ongoing rally, a move linked to Elon Musk.
The Tesla and SpaceX CEO updated his X profile name to “Kekius Maximus” on December 31, while his profile picture featured a direct reference to PEPE. This sparked intense speculation, driving up prices across the global memecoin markets, including Dogecoin.
As depicted in the chart above DOGE price traded as low as $0.31 on December 31. Following Elon Musk’s profile updates, Dogecoin price increased by 25.8%, reaching $0.39 at press time on January 4.
DOGE Traders Deploy $790M Fresh Capital in the Last 5 Days
However, while the updates have since been reverted, other vital market indicators suggest the bullish DOGE market momentum could linger. Notably, Dogecoin derivatives markets data shows fresh capital inflows recorded in the past week outpaces the current DOGE price gains, indicating further upside potential.
In affirmation of this stance, Coinglass Open Interest chart below tracks real-time changes in capital stock invested with a cryptocurrency’s perpetual futures derivatives contracts. This serves as a proxy for monitoring the directional flow of capital around critical market phases.
As highlighted above, Dogecoin open interest stood at $2 billion as of Jan 1.
But that figure has since skyrocketed by $790 million to $2.79 billion at press time on January 4, reflecting a 39.5% increase in capital stock underpinning the DOGE derivatives markets.
Crucially, this means that the 39.5% growth in open interest has outpaced the 25% price gains observed in the DOGE spot markets.
When open interest rises quicker than prices, it flashes bullish signals for two key reasons.
First, the disproportionate growth in open interest relative to spot price gains suggests increasing leverage and heightened speculative activity in Dogecoin’s derivatives markets.
Dogecoin Price Forecast: Breaching $0.40 Could Trigger More Gains
As fresh capital continues flowing into DOGE trading positions, the growing liquidity eases the path to further upside.
To amplify gains, highly leveraged DOGE traders are now incentivized to make rapid spot purchases, potentially driving prices above $0.40 in the days ahead.
Technical indicators on the DOGEUSD daily chart also support this optimistic bullish price forecast with the Parabolic SAR dots moving below current prices, amid rising volumes.
As seen below, Dogecoin price prediction hints that DOGE is positioned for further gains as it flirts with the $0.40 resistance level.
On the daily chart, Parabolic SAR dots remain below the current price, a clear indication of sustained bullish momentum.
Rising trading volumes confirm increasing participation, while a positive volume delta suggests buyers maintain control.
This sets the stage for DOGE to test $0.42 as the next key resistance, with $0.47 acting as an extended target if upward momentum intensifies.
Conversely, the prevalence of highly leveraged LONG positions introduces risks of sharp downward volatility if sentiment reverses.
In a bearish scenario, DOGE could find initial support at the $0.36 territory —a key support level marked by prior accumulation. A deeper pullback could see DOGE price test $0.34, where another major historical buy-wall looms.
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