- Dogecoin (DOGE) price has surged 5% in the last 24 hours, while trading volumes have skyrocketed by 90%.
- With the potential for a 10% gain, DOGE is on track to turn the current supply zone into a bullish breaker at $0.0815, but a fall below $0.0569 could jeopardize this optimistic outlook.
Dogecoin’s Ascend: Rallying to New Heights
Amid a meme coin revival, Dogecoin (DOGE) stands out as a top performer, demonstrating a bullish trend while riding on the coattails of Bitcoin’s (BTC) rally. With a remarkable 25% increase in value over the past week, Dogecoin’s price has shown resilience, bouncing back from the $0.0569 support level. This positive momentum is further bolstered by a 90% surge in trading volume, indicating strong buyer interest.
As meme coins such as Shiba Inu (SHIB) and Floki Inu (FLOKI) follow in DOGE’s wake, with the latter experiencing over 30% gains, Dogecoin’s market position appears stronger than ever. The potential for a 10% price increase is on the horizon, with a break past the supply zone, ranging from $0.0755 to $0.0807, possibly flipping it into a bullish breaker and setting DOGE on a path to reach the $0.0815 resistance level.
Potential for Extended Gains and Associated Risks
In an exceptionally bullish scenario, Dogecoin’s gains could stretch further, potentially reaching the $0.0885 mark and flirting with the psychological barrier of $0.0900. This would represent a 30% increase from current levels, showcasing DOGE’s potential for substantial growth.
Dogecoin’s correlation with Bitcoin, sitting at 73%, indicates that DOGE’s price movements are closely tied to the flagship cryptocurrency’s performance. As Bitcoin continues its upward trajectory towards $35,000, Dogecoin is likely to follow suit.
Supporting this bullish outlook, the average transaction size for DOGE has seen a 24% increase over the last week, shifting from $12,552 to an impressive $42,327. This growth in transaction size hints at increased volatility and further bolsters the case for potential gains in Dogecoin’s price.
However, it is crucial to consider the risks. A rejection from the current supply zone could lead to a price correction, potentially erasing recent gains and bringing DOGE back down to the $0.0569 support level. In a worst-case scenario, a breakdown below this support could occur, signaling a bearish turn for Dogecoin.