Dogecoin's price has risen by an astounding 40% in recent weeks, reaching $0.24 at the most recent market close. DOGE's rapid transition from dormancy to leadership among meme coins and mid-cap assets has been fueled by increased on-chain activity, rekindled retail interest and a general recovery on the cryptocurrency market. Technically, the turning point that changed sentiment was Dogecoin's breakout above the 200-day EMA.
Solid trading volume, which is a crucial sign that the move was driven by real demand rather than speculative activity, supported the breakout. The argument for further upward movement is strengthened by the 50-day and 100-day EMA's bullish alignment beneath the current price action, assuming that macro market conditions continue to be favorable. This rally is supported by the data on the chain.
Dogecoin's 24-hour trading volume has increased by 41% to $23.35 billion, and the number of active addresses has increased by 34% to 39%, both of which are indications that network engagement is increasing. In the meantime, DOGE has a market valuation of almost $35 billion, which places it in the top 10 cryptocurrency assets by valuation. It is important to consider the larger dynamics of the cryptocurrency market despite these bullish indications.
Since Bitcoin's dominance is still high, money is typically diverted from other cryptocurrencies. But in Dogecoin's case, its distinct memetic power and well-known brand seem to be protecting it from the pressure that altcoins like ADA or XRP are currently experiencing.
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Although DOGE is approaching overbought territory, there is still opportunity for more upside before exhaustion sets in, according to the RSI reading around 65. The $0.28-$0.30 range could be the next reasonable target if volume holds and DOGE maintains support above $0.21, particularly if general market sentiment stays bullish.
Dogecoin has weathered the wave of recovery on the cryptocurrency market surprisingly well, and its fundamentals indicate that this trend may not be finished yet. The behavior of Bitcoin and consistent volume are important markers for DOGE's upcoming major push.
