Musk's Boost and Even a Short Squeeze! Will Dogecoin's Solo Bull Run Continue?

▲ Dogecoin (DOGE)/ChatGPT generated image ©

Despite the stagnant market atmosphere, Dogecoin (DOGE), once considered a mere meme coin, is attracting significant market attention by showcasing a solo rally, fueled by massive capital inflows from institutional investors and a powerful short squeeze (buying pressure that occurs to liquidate or cover short-selling positions).

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 29 (local time), Dogecoin surged by 2.39% over the past 24 hours, reaching $0.102, significantly outperforming the stagnant market's average returns. The primary driver of this upward trend is the launch of a 100% physically-backed Dogecoin Exchange Traded Product (ETP) by virtual asset management firm 21Shares on Xetra, Germany's leading electronic trading platform. This opened a secure entry point for traditional institutional investors, leading to structural capital inflows beyond temporary speculation by individual investors.

Indeed, coinciding with the news of the ETP launch, Dogecoin's Open Interest in the derivatives market surged by 25% to $1.74 billion, and its trading volume exploded by 163%. Furthermore, bullish news stimulating speculative sentiment, such as the impending 2026 Initial Public Offering (IPO) of Elon Musk's SpaceX, added fuel to the fire. Against this backdrop, the futures market witnessed a short squeeze (buying pressure that occurs to liquidate or cover short-selling positions), with over $21 million worth of bearish betting positions forcibly liquidated within 24 hours, further boosting the rally.

The short-term market direction hinges entirely on whether the psychological and technical support level of $0.10 is defended. Currently, the daily Relative Strength Index (RSI) stands at 47.79, indicating a neutral level. If buying pressure does not subside, there is ample room to move towards the primary target of $0.115, and a confirmed breakthrough could extend the view to $0.13. Conversely, if the key support level of $0.10 breaks, there is a risk of a decline to $0.095.

Consequently, Dogecoin's current upward momentum is interpreted as a multifaceted combination of robust fundamentals—the launch of a tangible institutional investment product—speculative demand, and a chain liquidation reaction in the derivatives market. Experts advise closely monitoring whether Dogecoin can settle above $0.115 within the next 48 hours to attract additional buying momentum. However, with the broader crypto Fear & Greed Index still at 39, remaining in the "fear" stage, the market's cautious sentiment, which limits indiscriminate surges, also persists.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*