There’s bets and then there’s this guy: a crypto trader just placed a major bullish bet on Dogecoin (DOGE-USD), buying two million call options with a strike price of $0.22. For this trade to pay off, Dogecoin needs to jump by 31% before the options expire on June 14.
The High-Stakes Bet on Dogecoin
According to CoinDesk, someone is making a big bet that Doge will have a big move soon. Two million call options at $0.22 is a gutsy play, considering DOGE is sitting at $0.166. For this trade to be profitable, Dogecoin has to rally significantly in the next 16 days. The last time DOGE hit $0.22 was back in March, and it hasn’t seen that level since November 2021. If Dogecoin doesn’t hit the mark by June 14, the options expire worthless.
Options are derivatives that give the buyer the right to buy or sell an asset at a set price before the contract expires. In this case, if DOGE doesn’t reach $0.22, these options are as good as junk mail.
The Technical Setup: Bullish Signals
From a technical analysis perspective, Dogecoin is doing pretty well. It’s currently trading just above its 20-day moving average at $0.161, which coincides with the neckline of an inverse head and shoulders pattern—a classic bullish reversal signal. It’s also well above its 200-day moving average at $0.132, showing a longer-term uptrend.
The daily Relative Strength Index (RSI) for Dogecoin indicates it’s primed for another leg up. There’s hidden bullish divergence—where the price makes a higher low while the RSI makes a lower low. This is a strong bullish signal, suggesting that despite the price action, underlying strength remains. This setup, near strong support levels, is likely drawing the attention of many bulls.
With Ethereum’s (ETH-USD) rally driven by ETF approvals, there’s speculation that Dogecoin might benefit from a similar boost, especially with the wildcard possibility of Elon Musk integrating DOGE as a payment option on X.
Since bottoming out at $0.056 in October 2023, Dogecoin has surged over 195%, buoyed by the crypto market’s overall bullish trend and U.S. spot Bitcoin (BTC-USD) ETF approvals.
Is Dogecoin a Buy?
According to TipRanks’ Summary of Technical Indicators, Dogecoin is a Buy.
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