Dogecoin has made a remarkable rise, reaching $0.44, surpassing the $62 billion market cap, driven by strong on-chain activity and increasing number of active addresses. This digital asset holds the title of the largest memecoin by market cap.
“This impressive growth is not just due to speculation; it reflects significant participation in the Dogecoin community.” This shows that Dogecoin has achieved significant success in terms of market capitalization and is experiencing healthy growth.
In recent weeks, Dogecoin has been an exceptional market performer, having dropped below $0.10 in October but has quickly recovered to trade around $0.44. This rise suggests that the cryptocurrency is starting to recover from its previous lows and is making a strong comeback.
The bullish sentiment is supported by technical indicators. The 50-day moving average at $0.26 acts as a critical support level, while the 200-day moving average at $0.15 provides a longer-term base. The significant gap between these moving averages indicates that the ongoing bullish momentum in the market is continuing strongly. The Relative Strength Index (RSI) is at 62, indicating that Dogecoin has paused somewhat after the previous rise in November, but still has potential to rise. The critical levels for investors are the resistance at $0.50, and the support levels at $0.40 and $0.35. These technical indicators will determine the direction of possible consolidation or breakout movements in the market.
Market cap continues to grow along with price gains, but there has been a recent small pullback to $61.3 billion, highlighting the importance for investors to closely monitor market sentiment.
Looking beyond the price action, Dogecoin’s on-chain metrics tell an equally strong story. Trading volumes increased significantly in November, reaching over $10 million per day, before settling at $2.44 billion at the beginning of December, indicating high trading interest and a healthy network.
Active addresses on the Dogecoin network have also seen a major increase, reaching 9.23 million in November. This increase suggests that the Dogecoin community is increasingly engaged and that price increases are not merely fueled by speculation but by actual network growth.
If Dogecoin manages to break out of the $0.50 resistance, it could reach $0.60 or higher by mid-December. In that case, increased market cap and network activity would support the rally and could attract more retail investors.
However, if the support at $0.40 cannot be maintained, Dogecoin may pull back to $0.35. This possibility may increase due to the decrease in transaction volumes and the number of active addresses. In addition, profit-taking by large investors, known as "whales", may increase market volatility. The general dynamics in the cryptocurrency market, especially the performance of Bitcoin, may significantly affect the future price movements of Dogecoin.