Dogecoin [DOGE] is making waves in the cryptocurrency market, with its price recently surging 25% to a new high for 2024.
After a brief consolidation phase, the memecoin seems to be gearing up for the next big move, with analysts predicting it could rise to $0.82—a 90% increase from its current value.
This significant breakout has reignited interest among investors and traders, raising questions about the sustainability of the rally and whether Dogecoin can maintain its upward momentum.
Dogecoin: Is a rebound underway?
By the end of this week, Dogecoin surged 25%, reaching an intraday high of $0.4759 on November 23.
This marks a significant turning point for the memecoin, which has been consolidating around $0.43 since November 14.
Cryptocurrency analyst Ali Martinez emphasizes the importance of this breakout, noting that decisive action above the bull flag pattern is a key catalyst.
Martinez predicts that this technical breakout could drive Dogecoin's price up to $0.82—a nearly 90% increase from current levels.
If this prediction holds true, the rise of Dogecoin could redefine market sentiment and reinforce its bullish narrative.
$0.82: How feasible is it?
The price action in November reflects strong upward momentum, with Dogecoin steadily climbing from $0.35 to a recent high of $0.4759.
The Relative Strength Index (RSI) indicates that the asset is nearing overbought levels, suggesting that while caution is warranted, there is still potential for further upside.
Meanwhile, the On-Balance Volume (OBV) shows a significant rise, confirming sustained buying pressure and investor confidence.
Key resistance levels at $0.50 and $0.74 (historical high) remain obstacles, and profit-taking could slow the upward trend.
Broader market conditions will also play a key role in determining whether Dogecoin can maintain its bullish trajectory towards the $0.82 target.
Factors driving DOGE's prospects
Interestingly, whale activity and improved market sentiment seem to enhance Dogecoin's chances of maintaining its bullish trajectory.
On-chain data shows that large holders or 'whales' have been actively accumulating, purchasing over 550 million DOGE worth approximately $214.5 million in the past week.
Additionally, Dogecoin's breakout has rekindled optimism, with increased trading volume and positive sentiment further supporting its rise.
If this momentum continues, combined with the ongoing activity of whales, Dogecoin may break through critical psychological levels and surge towards the $0.82 target predicted by Martinez.
However, profit-taking and external market dynamics remain major risks to watch in the coming weeks.
