Dogecoin (DOGE) continues to dominate the memecoin space, despite the pessimism that has affected other similar tokens. Currently trading above $0.46, this token has seen significant growth, driven by increased liquidity and trading activity.
After breaking through the key resistance level of $0.39, DOGE is now trading steadily above $0.4. This is the beginning sign of a potential bullish trend aimed at reaching the long-awaited $1 milestone, possibly before the end of 2024.
Here are insights into the factors driving DOGE's bullish momentum and the potential to achieve this ambitious target.
What drives the bullish momentum of Dogecoin?
1. Price breakout and trading activity
DOGE has recently broken through significant resistance at $0.39, trading continuously above $0.4. This bullish breakout is supported by a significant increase in trading activity, with the number of active addresses soaring from 70,000 to 1.6 million. This increased activity indicates strong market interest and liquidity flow.
2. Changes in whale behavior
The significant reduction in the whale-held supply has allowed smaller investors to take control, creating a more sustainable and distributed bullish rally.
3. Historical patterns
The current price volatility of Dogecoin reflects its behavior before the strong rally in 2021. If history repeats itself, DOGE may be on the verge of another explosive growth.
4. Golden Cross formation
The 50-day moving average has recently crossed above the 200-day moving average, forming a Golden Cross - a technical indicator often associated with long-term bullish trends.
Doge price history
This is the daily price chart of Dogecoin (DOGE) from February 26, 2022, to November 21, 2024.
Dogecoin experienced a brief rally in early November 2022, following the collapse of FTX. However, this rally did not last long, and as of November 21, 2024, Dogecoin is priced at approximately $0.39.
This contrasts with the rapid rise in its popularity in 2021. Following positive comments from Tesla CEO Elon Musk, the value of Dogecoin surged nearly 216% from January 28 to January 29, 2021, reaching a peak of $0.023535. This spike brought Dogecoin into the spotlight, making it one of the most discussed cryptocurrencies.
Price target: Can DOGE reach $1?
Short-term target: Dogecoin is likely to test the $0.6 level in the coming weeks as positive growth momentum builds.
Medium-term target: Reaching $0.90 seems feasible if the current trajectory holds.
Long-term target: The long-awaited $1 milestone could be achieved by the end of 2024, thanks to strong technical factors and market enthusiasm.
Some analysts even speculate that DOGE could exceed $1 during the peak of the bull market, with predictions reaching up to $11 based on historical bullish patterns.