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, driven 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 pullback imminent?
Dogecoin's market performance.
Dogecoin has experienced a parabolic rise, with its price climbing from below $0.10 to around $0.44 in October.
Strong technical indicators support this significant growth, highlighting strong market sentiment.
The 50-day moving average at $0.26 has become a launch pad for this rise, while the 200-day moving average at $0.15 remains a key long-term support level.
The widening gap between these averages indicates that bullish momentum continues.
As of the time of writing, the Relative Strength Index (RSI) is at 62, indicating that Dogecoin has slightly cooled from the overbought state it experienced in early November.
This indicates that if buying pressure resumes, there is room for further increases.
However, key levels to watch include the immediate resistance at $0.50, which is a psychological and technical barrier that may determine its December trajectory.
On the downside, immediate support is at $0.40; if a correction occurs, stronger support is around $0.35.
According to market sentiment and trading volume, the technical setup suggests that Dogecoin may consolidate within this range before attempting to break out again.
The market capitalization also shows a similar trend, climbing alongside the price increase. As of the time of writing, the market capitalization has slightly retreated to around $61.3 billion.
Take a look at Dogecoin's network growth.
Dogecoin's on-chain metrics also present an optimistic outlook. Trading volume surged significantly in November, peaking at over $10 billion in daily trading volume mid-month, before stabilizing around $2.44 billion in early December.
Although this decline indicates that speculative trading is cooling down, the network remains active and engagement is high, reflecting ongoing adoption.
In November, the number of active addresses in the Dogecoin network increased significantly, reaching a record 9.23 million. This growth indicates rising engagement, with both new and existing users actively participating in the ecosystem.
Data confirms that the rise of Dogecoin is not purely speculative but supported by tangible network growth, thereby strengthening its market position.
Market sentiment and December predictions.
If Dogecoin breaks through the resistance level of $0.50, 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 could attract more retail investors, further boosting upward momentum.
Conversely, failing to maintain the support level at $0.40 could lead to a retracement to $0.35, especially in the context of declining trading volume and active addresses.
Profit-taking by whales may intensify short-term volatility and increase the risk of a pullback. The broader cryptocurrency market, particularly Bitcoin's performance, will also be key in determining Dogecoin's trajectory.
