Dogecoin ($DOGE) has made a strong comeback recently, once again becoming the focus of the market, with its price rising by 41% in the past few days. This phenomenon raises the question: Can $DOGE reclaim its leading position among meme coins, or will it face fierce competition from rivals like $PEPE?
1. **Performance of $DOGE in the Last Bull Market**:
During the last bull market, $DOGE's price surged an astonishing 1240%, becoming the market's focal point. However, it then entered a steep downward trend, losing almost all of its gains by mid-2022. In the current market, $DOGE rose to $0.22 before retreating to $0.08. It has now broken through the downtrend line, showing signs of a potential return to bullish territory.
2. **Short-term Outlook for $DOGE**:
The 4-hour chart shows a clear breakout for $DOGE, with the price forming higher highs and higher lows, suggesting bullish momentum. However, caution is advised, as the relative strength index (RSI) on the 4-hour timeframe has started to point downwards. This may indicate that a correction is imminent, possibly pushing the price back to the 0.236 Fibonacci level at $0.133 or the 0.382 level at $0.123.
3. **Long-term Outlook for $DOGE**:
On the weekly chart, while $DOGE has made significant progress, there is still a long way to go before reaching its all-time high. However, a solid price foundation has been established below the current level, which may provide strong support for future increases. If $DOGE can break through its immediate resistance, it may pave the way for new local highs and continued growth during the remainder of this bull market.
In summary, the future development of $DOGE remains uncertain, but its recent price surge and market performance have undoubtedly injected new vitality into the meme coin market. Investors should closely monitor market dynamics and consider their individual risk tolerance.