Dogecoin (DOGE) shook up the cryptocurrency market last week with an impressive gain of no less than 103%. What started out as a joke has now caught the attention of investors and analysts.
The price surge not only helped DOGE break through major resistance levels but also generated massive trading volumes across the globe.
The rally is in full swing
DOGE’s uptrend started with a breakout above the $0.320 resistance level, after which the price continued to rise above $0.400. The price of Dogecoin peaked at $0.4342 before a minor correction. Despite the decline, the price remains above the critical support level, and market analysts are optimistic about the potential for further upside.
According to recent market data, DOGE is holding firm above the $0.3650 level and the 100 hourly simple moving average. A key support is near $0.3870, while a new resistance is located at $0.4150. A breakout above these levels could push Dogecoin further towards $0.4500 and possibly $0.4650.
The boost to the Korean market and the “Kimchi premium”
One notable driver behind Dogecoin’s recent success is increased demand in South Korea, fueled by the so-called “Kimchi premium.” This phenomenon causes the cryptocurrency to trade at a higher price in South Korea than on global exchanges.
On the Korean exchange Upbit, DOGE trading volume increased significantly, and the price of the DOGE/KRW currency pair was 1.5% higher than Binance. Web3 analyst Bradley Park reported that Dogecoin accounted for 32.4% of Upbit's total trading volume, even more than Bitcoin. Globally, Dogecoin trading volume reached $22 billion on Tuesday, of which Upbit accounted for 20.7%.
Historical trends and possible prospects
Cryptocurrency analyst Kaleo predicts that Dogecoin is in the early stages of a new bull run, similar to previous rallies. According to Kaleo, DOGE often makes large, rapid moves around 200 days after Bitcoin halving. If this trend repeats, Dogecoin could see another big rally.
In the previous rally, DOGE gained 65% in 24 hours to over $0.70. Moreover, historically, Dogecoin has gained 175% once it has gained momentum against BTC. This historic performance has sparked speculation that the long-awaited $1 target is about to be achieved.
