Retail investors’ FOMO sentiment towards Dogecoin suggests that Dogecoin may fall again before continuing to rise.
The Dogecoin RSI has been rebounding from the oversold region on the 4-hour chart.
This period is known as “too many retail traders,” and historically, it has meant that Dogecoin could soon face another price drop, as it did in May 2024, January 2023, and May 2021.
Market analysts interpret this surge in activity as FOMO (fear of missing out), which can lead to large sell-offs, manipulation to eliminate late entrants into the market.
However, this potential decline could set the stage for a significant rebound that could even push DOGE to new highs.
Analysts note that such cycles are common in highly volatile, meme-driven markets, where emotional trading can lead to rapid price changes.
The current retail frenzy indicates that interest in Dogecoin is strong, setting the stage for significant market moves in the near future.
Number of trades across all exchanges
Dogecoin also set a new record for total trading volume across all exchanges, reaching an all-time high in November 2024.
The surge in trading activity reflects growing interest in the meme-based cryptocurrency, surpassing peaks seen in early 2021 and mid-2023.
The surge in trading volume coincided with a period of heightened price volatility, indicating increased participation. As trading frequency soared, DOGE’s price also showed significant volatility.
This trend was particularly evident in November, with transaction volumes in both spot and futures markets rising sharply, highlighting the active participation of traders around the world.
This milestone trading activity for Dogecoin indicates renewed enthusiasm in the crypto community, potentially bringing Dogecoin more attention and investment.
Cryptocurrencies continue to attract a diverse audience, fueled by underlying community support and widespread media coverage, leading to volatile yet compelling market performance.
DOGE Price Prediction
1. Optimistic Forecast
As the cryptocurrency market continues to grow, demand for Dogecoin is expected to increase. Some analysts believe that DOGE may break through $1 in 2024. According to CoinMarketCap, the asset is currently trading at $0.40418, which is still a long way from $1, but as the market develops, there is a possibility of rising to $1 or even higher.
Celebrity endorsement is also an important factor driving the price of Dogecoin. Public support for Dogecoin by celebrities such as Elon Musk may drive its demand. Tesla CEO Elon Musk, a billionaire known as a "tech madman" and self-proclaimed godfather of Dogecoin, has undoubtedly injected a shot in the arm for the currency with his public support and frequent interactions with Dogecoin.
2. Conservative forecast
Some analysts are more conservative and predict that Dogecoin will remain at a lower level. The expected price in 2024 is difficult to predict accurately, but it may be between $0.6 and $0.45. Considering the uncertainty of the cryptocurrency market and the characteristics of Dogecoin itself, conservative predictions are reasonable. The supply of Dogecoin is unlimited, and compared with currencies with a limited circulation, this unlimited inflation may suppress long-term price increases.
Although Dogecoin has certain advantages in some aspects, such as strong community cohesion, more catalysts are needed to achieve a significant price increase to $1. Therefore, the conservative forecast is that Dogecoin will remain at a low level.
IV. Conclusion
Whether Dogecoin can reach $1 by the end of 2024 is not a certainty and depends on the combined effect of many factors. From the current situation, there is uncertainty about the possibility of Dogecoin reaching $1 by the end of 2024.
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