Dogecoin (DOGE) is creating a frenzy in the cryptocurrency market, with recent prices rising by 25%, reaching a new high for 2024.
After a brief accumulation phase, this memecoin appears to be preparing for its next big move, with analysts forecasting a potential price increase up to 0.82 USD – equivalent to a 90% increase from the current value.
This strong breakout has rekindled interest from investors and traders, leading many to question the sustainability of this rally and whether Dogecoin can maintain its growth momentum.
Dogecoin: Preparing for a new price surge?
At the end of the past week, Dogecoin had increased by 25%, reaching a daily high of 0.4759 USD on November 23.
Source: TradingView
This is a significant turning point for the memecoin, after it has accumulated around the 0.43 USD mark since November 14.
Cryptocurrency analyst Ali Martinez has emphasized the importance of this breakout, stating that overcoming a 'bull flag' pattern is the main catalyst.
Martinez predicts that this technical breakout could push Dogecoin to the level of 0.82 USD – an increase of nearly 90% from the current price.
If this forecast is accurate, Dogecoin's price surge could redefine market sentiment, reinforcing the optimistic narrative of this cryptocurrency.
Is the threshold of 0.82 USD feasible?
Price movements in November reflect strong growth momentum, as Dogecoin consistently rose from 0.35 USD to a recent high of 0.4759 USD.
The RSI (Relative Strength Index) indicates that this asset is approaching overbought levels, suggesting a potential continuation of the rise, although caution is advised.
Meanwhile, the OBV (On Balance Volume) indicator has shown strong increases, confirming sustainable buying pressure and investor confidence.
Key resistance levels at 0.50 USD and 0.74 USD (all-time high) remain obstacles, where profit-taking could slow the upward trend.
The broader market conditions will also play a crucial role in determining whether Dogecoin can maintain its upward momentum towards the target of 0.82 USD.
Factors driving DOGE's outlook
Interestingly, the activity of whales and improving market sentiment seem to support Dogecoin's ability to sustain its growth momentum.
On-chain data shows that large holders have been actively accumulating, with over 550 million DOGE — equivalent to approximately 214.5 million USD — purchased in the past week.
Additionally, Dogecoin's breakout has sparked optimism, with trading volume rising and positive sentiment continuing to support this price increase.
If this momentum continues, combined with whale activity, Dogecoin could surpass important psychological resistance levels and get closer to the target of 0.82 USD that Martinez predicted.
However, profit-taking and external market factors remain risks to watch in the coming weeks.
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