The number of active addresses for DOGE has increased over the past 30 days.
By market capitalization, it remains the largest memecoin.
Dogecoin [DOGE] has crossed an impressive milestone, with a market capitalization exceeding $62 billion.
This surge reflects a strong recovery from the lows earlier in 2024, fueled by increased on-chain activity, a spike in trading volume, and growing investor interest.
As the DOGE index continues to rise, questions also arise: Can it maintain this momentum in December, or is a correction imminent?
Market Performance of Dogecoin
Dogecoin has experienced a parabolic rise, with its price increasing from below $0.10 in October to around $0.44 currently.
Strong technical indicators support this significant growth, highlighting robust market sentiment.
The 50-day moving average of $0.26 has become a springboard for this rally, while the 200-day moving average of $0.15 remains a key long-term support level.
The widening gap between these averages indicates sustained bullish momentum.
As of the time of writing, the Relative Strength Index (RSI) is at 62, indicating that Dogecoin has slightly cooled from its overbought state earlier in November.
This suggests that if buying pressure resumes, there is further room for upside.
However, key levels to watch include the immediate resistance at $0.50, which is a psychological and technical barrier that could dictate its December trend.
On the downside, immediate support is at $0.40, with stronger support around $0.35 if a correction occurs.
Based on market sentiment and trading volume, technical setups indicate that Dogecoin may consolidate within this range before attempting to break out again.
Market capitalization also shows a similar trend, climbing alongside the price. As of the writing of this article, the market cap has slightly retreated to approximately $61.3 billion.
Take a look at Dogecoin's network growth
Dogecoin's on-chain metrics also show an optimistic outlook. Trading volume surged dramatically in November, peaking at over $10 billion in daily trading volume mid-month, before stabilizing around $2.44 billion at the beginning of December.
Although this decline indicates that speculative trading is cooling off, the network remains active and highly engaged, reflecting ongoing adoption.
In November, the number of active addresses on the Dogecoin network surged to a record 9.23 million. This growth indicates an increasing level of participation, with both new and existing users actively engaging in the ecosystem.
Data confirms that Dogecoin's rise is not purely speculative but is supported by tangible network growth, strengthening its market position.
Market Sentiment and December Forecast
If Dogecoin breaks the $0.50 resistance level, its target price could reach $0.60 or higher by mid-December, driven by its growing market capitalization and strong network activity.
Such a breakout may attract more retail investors, further driving the upward momentum.
Conversely, failure to maintain the $0.40 support level could lead to a pullback to $0.35, especially if trading volume and active addresses decline.
Profit-taking by whales may exacerbate short-term volatility, increasing the risk of a correction. The performance of the broader cryptocurrency market, particularly Bitcoin, will also be key in determining Dogecoin's trajectory.