Dogecoin price (DOGE) has seen a 6% price increase after Spirit Blockchain Capital Inc. (CSE: SPIR) revealed a strategy to earn returns from its Dogecoin (DOGE) holdings.
The strategy is designed to maximize Spirit’s potential to utilize Doge to optimize its digital asset treasury, which marks an important step forward in value to shareholders and the growing adoption of decentralized finance.
Spirit Blockchain’s Strategic Yield Initiative
From December 1, 2024, Spirit Blockchain began its initiative to generate yield off their dogecoin holdings, in an attempt to make the company treasury more efficient and boost the financial results. As such, the company has increased its Dogecoin exposure, and has used its partnerships and investment arms to extract as much value as it possibly can.
“This initiative represents a significant step for Spirit Blockchain Capital. By activating a yield-generation strategy with Dogecoin, we aim to unlock a previously untapped revenue stream while simultaneously positioning ourselves as a market leader in yield generation for not only Dogecoin, but the broader digital asset space within the public sector,” said Lewis Bateman, CEO of Spirit Blockchain Capital.
This move is in line with Spirit’s strategic plan to extend the same approach to other cryptocurrencies such as Bitcoin, Ethereum, and Tether. With the strategy of compliance and managing risks Spirit tries to create sustainable value for its shareholders and improve its position on the ever-changing cryptocurrency market.
Dogecoin Price Chart Analysis Shows Bullish Momentum
The news came as Dogecoin price increased by 6.32% in the last 24 hours to trade at $0.3386. The daily price ranged from $0.3184 to $0.3450 showing moderate volatility and increasing interest in the market. The trading volume jumped by 118.91% to $3.37 billion. The market capitalization rose by 6.47% to $49.92 billion.
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A look at the technical analysis shows that lower support levels are at $0.33 and $0.32,Bitcoin has resistance at the $0.345 and $0.35 levels. If price surges above $0.35, it will create more bullish pressure; targets at $0.36 and $0.38 could be seen.
New trading volumes reported show that there is a continuous buying pressure mainly influenced by the bullish trend on the meme coins market and encouraging sentiments.
They suggest that institutional investors bought more than 270 million DOGE, worth $89.64 million, within a 96-hour period in November of 2024. On the other hand, the Dogecoin Foundation has been working on developing open-source payment solutions, which increased the chances of using the token for payments in real life, and growing its adoption.
Data on Open Interest Indicates Rising Activity of Traders
The open interest (OI) for Dogecoin has picked up significantly, and the total OI stands at $1.8 billion, a 7.09% rise within the past 24 hours. As of the time of writing, all open interest is in perpetual contracts, with most trading happening on Binance and Bybit.
The OI has increased which is an indication of higher level of speculative trading mainly due to the current price upsurge and the announcement made by Spirit. It means that the market is already gearing up for a bullish breakout but if this does not push through, then there may be liquidations and bear pressure.
Dogecoin Price Long Term Potential and Forecasting by Analysts
The yield-generation plan is the first of the multi-step plans to enhance the cryptocurrency treasury of Spirit Blockchain. The company will continue to grow this strategy to encompass other assets, thus generating steady income streams and still observing the legal requirements on disclosure.
Despite the recent stagnation, experts continue to be optimistic about Dogecoin, with Galaxy Research expecting DOGE to break through its ATH of $0.7376 and reach $1 by 2025
