The price of Dogecoin (DOGE) has gained 10% in the past 24 hours, attracting the attention of traders and increasing trading activity. The recent surge in trading volume and trend indicators such as ADX reflect the increased market interest. This bullish momentum is further supported by the positioning of the DOGE EMA lines, indicating that the uptrend may continue.

If this strength continues, DOGE could soon test key resistance levels and have room to rise further. However, a reversal could lead to a retest of the support area, so now is an important time to watch for a change in trend.

DOGE daily trading volume recently exceeded $2 billion

DOGE’s daily trading volume recently surged to $2.27 billion, the highest level since August 5. Since then, trading volume has retreated slightly and currently stands at $2.12 billion. The surge in trading volume indicates increased trading activity, attracting the attention of traders and investors.

Rising volume can signal a potential shift in market trend, making it a key indicator for assessing buying or selling pressure.

Tracking trading volume is crucial as it provides insight into the forces behind price movements. The recent surge in DOGE trading volume appears to be correlated with its price increase, from $0.10 to $0.134 between October 10 and October 18.

Increased volume often indicates growing confidence in the market, and in this case, it suggests strong support for rising prices. The increase in volume supports the view that investors are confident in the current trend, potentially driving DOGE higher.

Dogecoin’s current uptrend is strong

DOGE’s ADX is currently at 34.12, whereas it was only 13 four days ago. This massive increase shows that the market trend for DOGE is strengthening. The ADX or Average Directional Index helps measure the strength of a trend, whether it is bullish or bearish, regardless of its direction.

The sharp rise in DOGE's ADX suggests that the market is going through a period of strong conviction and that the trend is gaining substantial momentum. Such a rapid shift represents a significant change in investor sentiment, creating an environment ripe for further price action.

The ADX is a powerful tool for identifying trend strength. It ranges from 0 to 100, with values ​​below 20 generally indicating a weak or non-existent trend, while values ​​above 25 indicate a clear and strengthening trend.

DOGE’s current ADX value is 34, which puts it comfortably in “strong trend” territory, suggesting that recent price action is not a short-lived spike, but rather part of an ongoing trend. Considering that DOGE’s price has surged 10% in the past 24 hours, the growing ADX adds credibility to the rebound, suggesting that there is considerable momentum supporting the price action.

Although the current ADX is strong, it is still well below levels seen during recent price surges, such as between September 26 and September 28, when DOGE’s price surged 30% and the ADX reached nearly 45. This suggests that there is room for further strength, and if the uptrend continues, the ADX could continue to rise.

If the current momentum continues, the ADX could easily climb higher, further validating the strength of the current trend and opening the door for more potential gains.

DOGE Price Prediction: Back to $0.17 in October?

The EMA lines for DOGE are currently in an uptrend, with the short-term EMA being above the long-term EMA with a sizeable gap between the two. This setup suggests that the upward momentum is strong and healthy.

The exponential moving average (EMA) is a type of moving average that places more weight on recent price data, making it highly responsive to the latest market conditions.

They are used to identify trends, with the short-term EMA reacting quickly to price changes, while the long-term EMA moves more slowly. When the short-term EMA is above the long-term EMA, it usually indicates an uptrend, indicating that buyers have the upper hand and momentum is building.

If the current uptrend in DOGE continues and strengthens, the DOGE price could test the $0.14 level and even challenge the $0.175 resistance level – the highest price since May. Such a move would represent an increase of about 30% from the current level, showing the strength of the uptrend indicated by the EMA lines.

The significant distance between the short-term and long-term EMAs indicates that bullish momentum is steadily building, supporting continued moves higher.

However, if the uptrend falters and reverses, DOGE could revisit the critical support area of ​​$0.12 and could even drop to $0.098, which would imply a potential 26% correction. The gap between the EMA lines will start to narrow, indicating a weakening trend, a situation that could indicate a shift in sentiment to the bearish side.