The crypto market has been abuzz this month as Dogecoin (DOGE) hit its highest value since May 2021, hitting a high of $0.4795.
As Bitcoin approaches the coveted $100,000 mark, many are wondering if the bullish momentum will carry over to Dogecoin. Recent trends suggest that Dogecoin price could climb even higher, possibly setting new records.
As of November 30, Dogecoin was trading at $0.42, reflecting an impressive 351% increase from its September low, according to Brave New Coin’s. DOGE Price Index. Many Crypto analysts are eagerly hoping that DOGE could reach $1, a milestone that has become a popular topic of discussion.
“Dogecoin approaches $1! We’re at 40 cents now, while others are having $100,000 Bitcoin watch parties, so let’s enjoy a $1 Dogecoin watch party,” said crypto analyst Kriss Pax.
DOGE – Best Altcoin to Buy Now?
Dogecoin’s rally reflects the impressive gains seen by Bitcoin, which is setting its own records as it nears the $100,000 threshold. Historically, the two cryptocurrencies have shown a close correlation, often moving in tandem. Data from IntoTheBlock highlights this relationship, revealing a high correlation coefficient of 0.98 between the two. This suggests that as Bitcoin rises, Dogecoin could continue its uptrend.
Source: In the block
Analysts are optimistic that Dogecoin’s recent rise is just the beginning. Technical indicators show that DOGE is poised for further gains if Bitcoin hits the $100,000 mark as expected. Bitcoin recently broke through key resistance levels, and its cup-and-handle pattern suggests a jump to $100,000 is likely. As this happens, DOGE price could follow suit, benefiting from Bitcoin’s record move.
Source: TradingView
On the charts, Dogecoin made notable progress, breaking through important resistance levels. It recently surpassed $0.2278, its March 2023 high, invalidating a previous double-top trend. Additionally, the coin formed a golden cross shape with the 50- and 200-week moving averages crossing each other, indicating a potential long-term uptrend. With the 50% Fibonacci retracement level at $0.03715 now well behind, traders are closely watching the next move.
RSI at 85: overbought alert
Dogecoin’s performance has attracted the attention of investors and analysts. On the technical side, the Relative Strength Index (RSI) stands at 85, a highly overbought condition. This suggests that the coin is in a strong position. If buying pressure subsides, a short-term pullback could be on the cards.
The 9-EMA is currently above the 21-EMA, signaling that the trend is up. Although there is no confirmed crossover yet, the signs are positive for traders looking to take advantage of this momentum. If DOGE maintains its uptrend, the next target could be $0.7400, which is an all-time high. This would represent a potential gain of 85% from its current levels. But if DOGE falls below $0.2278, the bullish outlook could be invalidated.
Analysts have pointed out that Dogecoin is largely driven by market sentiment and hype. A good example of this is President-elect Trump’s announcement of the creation of the Department of Government Effectiveness (DOGE) to be led by Elon Musk. Cryptocurrency analyst Ali Martinez highlighted DOGE’s tracking during the 2017 and 2020 bull run. Martinez noted that after strong price increases, Dogecoin has historically experienced short-term pullbacks before resuming its rally. This cycle could repeat itself in 2024, as Dogecoin’s market behavior suggests the potential for further fluctuations.
“Dogecoin $DOGE will test your patience in this parabolic run! Just like in 2017 and 2020, we received a sell signal from TD, predicting a brief correction before the bull rally continues,” Martinez said.
DOGE eyes $1 to $1.69 target
As Bitcoin approaches $100,000, some analysts believe Dogecoin is gearing up for a major breakthrough. “Dogecoin has consolidated near resistance levels, forming a robust ascending triangle – a classic bullish pattern,” said another crypto analyst, Play Some. This trend, combined with increasing trading volume and a series of higher lows, indicates that Dogecoin could be preparing for a breakout towards $1.
To support DOGE’s bullish momentum, crypto expert Noodles believes that DOGE could see even more significant upside, projecting a price target of $1.69. This optimistic view aligns with growing confidence in the coin’s potential, particularly if enthusiasm for the meme coin continues to grow alongside broader adoption of the cryptocurrency.
Source: Noodles
Dogecoin trading volume has increased recently, reflecting an increase in retail participation. Similar trends emerged in May 2021 and January 2023, when increased participation by retail traders led to lower prices. This phenomenon, fueled by the fear of missing out (FOMO), often triggers sell-offs or market manipulation. However, the resumption of retail activity also signals increased enthusiasm for Dogecoin, which reached an all-time high in November 2024 for total transactions on exchanges.
Source: CryptoQuant
So is DOGE the best altcoin to buy now? No one knows for sure, but you’d be brave to bet against it.