Dogecoin [DOGE] has passed an impressive milestone, with a market cap of over $62 billion.
Dogecoin’s (DOGE) surge reflects a strong recovery since the beginning of 2024, thanks to increased on-chain activity, surging transaction volumes, and growing investor interest. As DOGE continues to climb, the question arises: Can it maintain this momentum in December, or will it face a pullback?
Dogecoin has experienced a parabolic rise, with the price rising from below $0.10 in October to currently around $0.44. Strong technical indicators underpinned this significant increase, underscoring the strength of market sentiment.
The 50-day moving average at $0.26 has served as a springboard for this rally, while the 200-day moving average at $0.15 remains a key long-term support level. The widening gap between these averages suggests that the current bullish momentum is expected to continue.
At press time, the relative strength index (RSI) of Dogecoin (DOGE) is 62, indicating that Dogecoin has cooled slightly from its overbought state in early November. This means that if buying pressure resumes, DOGE still has room to rise further.
Key levels to watch include the immediate resistance at $0.50, a psychologically and technically important level that could determine its direction in December. On the downside, immediate support is located at $0.40, while in the event of a correction, stronger support is located around $0.35.
Based on market sentiment and trading volume, the technical setup suggests that Dogecoin may consolidate between $0.35 and $0.50 before attempting a breakout. Dogecoin's market capitalization has also shown a similar trend, climbing as the price rises. As of this writing, the market capitalization has retreated slightly to around $61.3 billion.
Look at Dogecoin’s network growth
Dogecoin’s on-chain metrics also paint a positive picture. November saw a massive spike in trading volume, with daily volume peaking at over $10 billion in the middle of the month before settling at around $2.44 billion in early December.
While this decline suggests that speculative trading is cooling, the network remains active and highly engaged, reflecting continued adoption.
The number of active addresses on the Dogecoin network increased significantly in November, reaching a record high of 9.23 million. This growth indicates increasing participation, with both new and existing users actively participating in the ecosystem.
The data confirms that Dogecoin’s rise is not purely speculative, but is supported by tangible network growth, strengthening its market position.
Market Sentiment and December Forecast
If Dogecoin breaks through the $0.50 resistance, its target price could reach $0.60 or higher by mid-December, driven by its growing market capitalization and strong network activity. Such a breakthrough could potentially attract more retail investors, further fueling the upward momentum.
However, if Dogecoin fails to maintain the $0.40 support level, a retracement to $0.35 could occur, especially if trading volume and active addresses decline. In addition, profit-taking by whales could exacerbate short-term volatility and increase the risk of a pullback.
The performance of the broader cryptocurrency market, especially the trend of Bitcoin, will also have an important impact on the future performance of Dogecoin and become a key factor in determining its trend.
