Today, the price of Dogecoin (DOGE) has soared, rising by more than 12% in 24 hours to $0.18. This rise is consistent with the recovery trend of the entire Meme coin market, and popular Meme coins such as Shiba Inu Coin (SHIB), PEPE and BONK have also recorded double-digit growth.
Analysts pointed out that DOGE’s rise has reignited the market’s bullish sentiment towards this “veteran” Meme coin, and predicted that if it breaks through the key resistance level, it may challenge the target price of $0.27 in the coming weeks.
Musk reduces interaction, but DOGE shows independent upward momentum
For a long time, the price fluctuations of Dogecoin have been highly correlated with the remarks of Tesla CEO Elon Musk. However, Musk recently announced that he would reduce his interaction with the "Department of Government Efficiency" (DOGE, a pun) on the grounds that he needed to focus on Tesla's performance pressure. Although some investors are concerned that the weakening of Musk's influence may affect the trend of DOGE, the token rose instead of falling after the announcement, showing the market's recognition of its independent value.
Short positions are being liquidated, technical indicators show short-term overheating
The rapid rise of DOGE has led to a massive liquidation of short positions in the futures market. According to Coinglass data, more than $11.6 million of short positions were liquidated in the past 24 hours, of which 85% of the losses came from traders who shorted DOGE. However, technical indicators also show that DOGE may face the risk of a short-term correction - both the relative strength index (RSI) and the stochastic oscillator have entered the overbought area, prompting investors to be wary of volatility.
From a technical analysis perspective, DOGE has recently successfully broken through the downward trend line resistance and the 50-day moving average (SMA), and formed a classic descending wedge pattern, which is generally seen as a bullish signal. Analysts emphasize that if DOGE can stand above $0.1822 (200-day moving average), it is expected to further rise to $0.20, and even challenge the 100-day moving average resistance level of $0.21. CryptoQuant analysts said: "DOGE's breakthrough is in line with technical textbook expectations. If it stands above $0.1809, the next target will be $0.27."
Meme coin craze returns, Bitcoin and Ethereum strengthen simultaneously
DOGE's rise is not an isolated phenomenon, and the overall cryptocurrency market is showing a positive trend. Bitcoin broke through $94,500 today, hitting a two-month high, and Ethereum also returned to the $1,700 mark. Market participants believe that the improvement in macro sentiment, the return of funds to risky assets, and technical breakthroughs have jointly driven this round of gains.
Well-known cryptocurrency analyst "Master Ananda" pointed out that DOGE may have completed a long-term adjustment since the end of 2024 and is currently at the starting point of a new round of upward waves. He predicted: "If the shock wave pattern is established, DOGE is expected to break through $0.27 and may move towards $0.40 or even the historical high of $0.70."
Although short-term technical indicators indicate a risk of a correction, the overall trend of DOGE is still optimistic in the market. Investors need to pay close attention to the breakthrough of key resistance levels and changes in trading volume. If the current momentum can be maintained, DOGE may usher in a new highlight moment in 2025.
