Dogecoin [DOGE] has made waves in the cryptocurrency market as its price recently surged 25% to reach a new high for 2024. After a brief consolidation period, the memecoin seems poised for its next big move, with analysts predicting that the coin could rise to $0.82 – a 90% increase from its current value.
This strong breakout has sparked renewed interest among investors and traders, raising questions about the sustainability of the rally and whether Dogecoin can maintain its upward momentum.
Dogecoin: About to Surge?
As the week ended, Dogecoin surged 25%, reaching a daily high of $0.4759 on November 23.
This event marks a significant turning point for the memecoin, which has stabilized around $0.43 since November 14.
Cryptocurrency analyst Ali Martinez emphasizes the significance of this breakout, viewing the decisive move above the bullish flag pattern as the main catalyst.
Martinez predicts that this technical breakout could push Dogecoin's price to $0.82 – a nearly 90% increase from the current level.
If this prediction holds true, the price surge of Dogecoin could reshape market sentiment, reinforcing bullish prospects.
$0.82: How Feasible Is It?
Price movements in November reflect strong upward momentum, as Dogecoin steadily rose from $0.35 to a recent high of $0.4759.
The Relative Strength Index (RSI) indicates that the asset is approaching overbought levels, suggesting potential for further price increases, although caution is still warranted.
Meanwhile, the On-Balance Volume (OBV) indicates significant increases, confirming ongoing buying pressure and investor confidence.
Key resistance levels at $0.50 and $0.74 (the all-time high) remain barriers, where profit-taking could slow the upward trend.
Wider market conditions will also play a crucial role in determining whether Dogecoin can maintain its bullish trajectory towards the $0.82 target.
Factors driving the outlook for DOGE
Interestingly, whale activity and improving market sentiment seem to have bolstered the chances of Dogecoin maintaining its bullish trajectory.
On-chain data shows that large holders, also known as 'whales', have been actively accumulating, with over 550 million DOGE – worth about $214.5 million – purchased in the past week.
Additionally, Dogecoin's breakout has rekindled optimism, with trading volume increasing and positive sentiment further supporting its rally.
If this upward momentum continues, along with ongoing whale activity, Dogecoin could break through key psychological thresholds and move towards Martinez's projected target of $0.82.
However, profit-taking and external market volatility remain key risks to watch in the coming weeks.