In the past few days, many people have been asking the editor about the trend of Dogecoin, so today I decided to write another article about Dogecoin. Yesterday, Dogecoin made a strong recovery from a week of lackluster performance, and its price surge has attracted widespread attention and discussion in the market.
Dogecoin has seen a significant increase of 10% in the past 24 hours, generating many bullish predictions on social media. Cryptocurrency trader Schofield excitedly declared that Dogecoin is 'back' and showing a stronger momentum than ever.
However, there are also differing voices in the market. Master Kenobi holds a more cautious attitude, predicting that Dogecoin will close in a downward trend this week but will see an upward momentum in the following two weeks, expecting a significant rise around December 30. Despite the varying opinions, it cannot be ignored that Dogecoin has once again become a leader in trading volume in the cryptocurrency market, indicating strong investor interest. According to Cryptocurrency Inside data, Dogecoin's 24-hour trading volume reached $9.52 billion, far ahead of Pepe ($6.58 billion) and Shiba Inu ($2.24 billion), firmly securing the top spot in trading volume.
Despite differing opinions in the market, from a technical standpoint, my previous articles have mentioned that Dogecoin is currently trading between two major weekly levels from its 2021 run (0.35-0.45). Currently, Dogecoin has found strong support around $0.38, and if it successfully retests $0.45, it is very likely to trigger an upward breakout, starting a new wave of increases.
From market data, Coinglass data indicates that the amount liquidated in the cryptocurrency market in the past 24 hours reached $17.9 million, while open interest surged 5.6% to $3.3 billion. After a period of turbulent adjustment, the cryptocurrency market has gradually stabilized, with prices heading towards stability. Notably, the average dollar investment age (MDIA) is quietly pointing to increased network activity, which, based on historical experience, is usually seen as an important precursor to a long-term bullish trend. Although the cryptocurrency market has generally experienced pullbacks this week, the average dollar investment age (MDIA) — a cryptocurrency metric often overlooked by the market — suggests that major assets, including Dogecoin, may show bullish momentum. Dogecoin stands out in this regard, as its MDIA has decreased by 31% over the past eight weeks. Behind this decline in MDIA is a significant increase in the activity of dormant wallets (especially large whale wallets), with old coins re-entering the circulating market in large quantities. Looking back at the historical trends of the cryptocurrency market, similar trends typically precede sustained bull markets, as seen before significant rebounds in the markets of 2017 and 2021. While short-term price fluctuations are inevitable and filled with uncertainty, this indicator undoubtedly adds solid confidence to the medium- and long-term bullish outlook for the cryptocurrency market. The MDIA data was released during a significant period of turbulence for Bitcoin, during which tens of billions of dollars were liquidated. However, an interesting phenomenon emerged during this time, where retail selling frenzy intertwined with active buying by institutional investors (especially American investors). This phenomenon indicates that overall market bullish sentiment remains strong. As of now, after a 4% increase in the past day, Dogecoin's trading price is close to $0.42.
Considering multiple factors, after the recent pullback, this OG meme coin may ultimately initiate a considerable upward trend. However, everyone still needs to closely monitor market dynamics, especially the breakout situation of the key resistance level at $0.45, and the impact of possible regulatory policies on Dogecoin's price trends.
