DOGE has regained momentum after consolidating in the $0.40 range for a week.
To curb volatility and reach the $1 milestone, DOGE needs a 'secret Santa'—a catalyst or strong support.
$1 has once again become the focus, as two top altcoins reclaim this elusive threshold after years of unstable price movements.
However, Dogecoin [DOGE] has lagged, failing to hit benchmarks despite weekly double-digit gains. The speculative nature of memecoins often makes them more volatile than other altcoins.
Nevertheless, as the largest meme coin, Dogecoin has proven its resilience, leading the 'super cycle' in the last bull market and receiving repeated support from influential figures.
Currently, DOGE has risen 16% in the past 24 hours, outperforming other currencies, and open interest is increasing, with notable analysts speculating that DOGE could next reach $0.60. Does this mean it is likely to join the $1 club?
The appeal of high risk and high reward may delay the $1 mark.
A week ago, DOGE entered a consolidation phase after reaching $0.40 during the election cycle, following a daily increase of over 25%.
With trading volume surging above $17 billion, a correction is inevitable, indicating an overheated market.
However, the pullback is brief, with DOGE rising 10% daily and currently trading at $0.46.
This rebound reflects ongoing bullish sentiment, which is a key factor for memecoins relying on community support during bear market phases.
Riding this momentum, market makers are now speculating whether a new rally will push DOGE to its historical high of $0.73 and potentially reach the $1 benchmark.
Despite DOGE rising nearly 30% weekly, ranking first among memecoins, reaching this target remains challenging.
Interestingly, spot traders have accumulated nearly $180 million worth of DOGE tokens over the past week, consistent with its consolidation phase.
This suggests that savvy investors have capitalized on the 'dip' to purchase DOGE at a discount, effectively staving off short sellers challenging its upward momentum.
The pattern following Bitcoin's halving has further fueled optimism, with expectations of a significant surge in DOGE by the end of this quarter and a parabolic rise by 2025.
Open interest has reached a record $3.77 billion, with futures traders betting on further price increases.
Despite these bullish indicators, Dogecoin still faces risks. Its RSI has entered the overbought zone, increasing the likelihood of weak stocks exiting and triggering a short-term pullback.
Unlike altcoins that are often held long-term despite pullbacks, meme coins like DOGE are typically favored for their 'high risk, high reward' appeal.
This inherent volatility makes them susceptible to sudden market fluctuations, posing the biggest challenge for DOGE to reach the $1 milestone.
How will DOGE overcome volatility to reach $1?
To rise from its current market value of $0.46 to $1, DOGE needs to increase by approximately 117.39%. Over the past 30 days, driven by macroeconomic trends and micro factors, DOGE has surged over 200%.
While Elon Musk's support may provide a temporary boost, sustained momentum will depend on large HODLers' involvement during turbulent times to offset market volatility caused by rapid trader shifts.
Over the past 30 days, whales have steadily withdrawn DOGE from exchanges.
Notably, more aggressive accumulation began 10 days ago, with around 1.12 billion tokens purchased, pushing DOGE past the critical psychological resistance level of $0.40.
This emphasizes that whale support is crucial for Dogecoin to surpass key price targets.
While the above indicators may push DOGE's price up to $0.60, breaking resistance and reaching the $1 mark will largely depend on the support of large HODLers.
Therefore, regularly monitoring whale activity is vital for predicting potential price movements.
