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Dogecoin (DOGE) has been on a bullish rally in the last 24 hours after finding support at the intra-day low of $0.193. Bulls, as a result, soared the DOGE price to a high of $0.2048 before facing resistance. At press time, DOGE was still bullish, with the bulls in control of the market and price trading at $0.2061, a 5.55% surge from the support level.
DOGE/USD 24-hour price chart (source: CoinMarketCap)
The meme cryptocurrency, initially started as a joke, has witnessed a significant uptrend in its market performance. This growth can be attributed to several key factors that have played a pivotal role in the recent price surge. For instance, the trading volume for Dogecoin has seen a substantial increase, climbing to $2.341 billion, an indication of heightened market interest. This increase in trading volume is a crucial component in driving the price upwards.
Another critical factor contributing to Dogecoin's rise is the increasing open interest in the cryptocurrency. The current open interest stands at $1.58 billion, a significant uptick that demonstrates growing confidence among investors and traders. Notably, major exchanges like Binance and Bybit have recorded substantial amounts in Dogecoin trades.
From a technical standpoint, Dogecoin has shown a strong resistance level at $0.205, a crucial point for the crypto to break in order to maintain its upward trajectory. Technical analysts have observed a rounding bottom structure in the DOGE's price movements, suggesting a potential for long-term growth. The current recovery trend is expected to face a high supply zone at the $0.22 level, which could serve as a critical juncture for future price actions.
DOGE/USD 24-hour price chart (source: TradingView)
The 11% gain in Dogecoin's 24-hour trading volume underlines the robust market activity. With Bitcoin's halving event approaching, this activity could be a precursor to an even more significant rally for Dogecoin, propelling it towards new highs.
As of now, Dogecoin's market cap hovers around $29.9 billion, securing its position among the top 10 largest cryptocurrencies. If the current momentum continues, there is potential for a 14% increase in the Dogecoin price, with a target of $0.228. A successful breach of this level could solidify the bullish trend and pave the way for the price to hit higher marks, such as $0.271 and potentially $0.3.
The overall sentiment in the meme cryptocurrency market remains high, as evidenced by the aggregate value tripling in 2024. Dogecoin's price doubling and similar trends in other meme coins like Shiba Inu and PepeCoin reflect a robust season for these types of cryptocurrencies.
With the Relative Strength Index (RSI) at 60, the market is currently in a neutral position, indicating potential for further upward movement. If the RSI continues to climb towards overbought levels above 70, it could signal a strong buying momentum and push Dogecoin's price even higher in the near term.
DOGE/USD 24-hour price chart (source: TradingView)
In addition, the Chaikin Money Flow (CMF) rating of 0.14 suggests that there is a moderate inflow of money into Dogecoin, supporting the current upward trend. This trend is further reinforced by the increasing trading volume, indicating growing interest and confidence in Dogecoin among investors.
If the CMF continues to rise and surpass 0.20, it could indicate stronger buying pressure and further support the bullish outlook for Dogecoin. However, investors should also monitor any potential signs of overextension in the market to avoid a possible correction in the future.
