UPDATE: Dogecoin (DOGE) is making waves in the crypto market, surging nearly 30% over the past four days, with a major challenge now set for the $0.166 resistance level. This explosive growth comes amid a significant recovery in the broader memecoin market, sparking renewed investor interest.
As of January 2, 2026, DOGE’s rise has outpaced major cryptocurrencies, reflecting a shift in market sentiment. According to Bloomberg ETF analyst Eric Balchunas, the 21Shares 2x Dogecoin ETF has emerged as one of the best-performing ETFs this year, highlighting DOGE’s strong momentum.
The current market climate has also seen DOGE’s open interest climb to 13.47 billion DOGE, the highest since the October 10 leverage flush, as reported by Coinglass. However, this figure has slightly dipped to 12.68 billion DOGE, suggesting a degree of skepticism among traders despite the price rally.
Meanwhile, the overall memecoin sector is experiencing a resurgence, with its market capitalization soaring over 30% to reach $47.8 billion in the same timeframe. This follows significant underperformance in previous months, where the memecoin to altcoin dominance ratio dropped to historic lows of 0.032 in December, indicating that memecoins accounted for only 3% of the overall altcoin market cap.
According to CryptoQuant contributor Darkfost, the recent gains across various memecoins signal potential for a broader market comeback. As DOGE prepares to tackle the $0.166 resistance, it has already surpassed the 50-day Exponential Moving Average (EMA), positioning itself for further climbs towards the $0.181 mark near the 200-day EMA.
On the downside, DOGE has support at $0.142. A decline below this level could push the price down to $0.121. Technical indicators reveal bullish momentum, with the Relative Strength Index above neutral while the Stochastic Oscillator enters overbought territory, suggesting a cautious approach as sustained overbought conditions could lead to a pullback.
As traders and investors closely monitor DOGE’s movements, the implications of this rally extend beyond just numbers. The renewed interest in memecoins reflects a shift in the crypto landscape, offering potential opportunities for those looking to capitalize on market trends.
Stay tuned for the latest updates as the situation develops and watch for DOGE’s performance against critical resistance levels.
