Dogecoin (DOGE) continues to dominate the memecoin space, defying the bearish sentiment that has plagued other similar tokens. Currently trading above $0.46, the token has seen significant growth, fueled by an increase in liquidity and trading activity.
After a bullish breakout past the key resistance level of $0.39, DOGE is now trading steadily above $0.4. This marks the start of a potential bull run aimed at reaching the long-awaited $1 mark, perhaps before the end of 2024.
Here’s an in-depth look at the factors behind DOGE’s rally and the likelihood of achieving this ambitious goal.
What’s Driving Dogecoin’s Bullish Momentum?
1. Price distribution and trading activity
DOGE recently broke through important resistance at $0.39, trading consistently above $0.4. This bullish breakout is supported by a remarkable increase in trading activity, with the number of active addresses increasing from 70,000 to 1.6 million. This increased activity is indicative of strong market interest and strong cash flow.
2. Change in whale behavior
A notable reduction in whale holdings allowed small investors to take the reins, creating a more distributed and sustainable rally.
3. Historical models
Dogecoin’s current price action reflects its behavior before the massive 2021 surge. If history repeats itself, DOGE could be on track for another explosive rally.
4. Formation of the Golden Cross
The 50-day moving average recently crossed above the 200-day moving average, forming a golden cross, a technical indicator often associated with long-term uptrends.
Doge Price History
Here is a chart of Dogecoin (DOGE) price by day from February 26, 2022 to November 21, 2024.
Dogecoin experienced a brief price rise in early November 2022, following the collapse of FTX. However, this rally was short-lived and as of November 21, 2024, Dogecoin was valued at around $0.39.
This contrasts with its growing popularity in 2021. After positive comments from Tesla CEO Elon Musk, Dogecoin’s value soared almost 216% between January 28 and 29, 2021, reaching a high of US$0.023535. This surge catapulted Dogecoin into the spotlight, making it one of the most talked about cryptocurrencies.
Now the question is whether it will reach $1 or not.
Price Targets: Can DOGE Reach $1?
Short-term objective: Dogecoin is expected to test $0.6 in the coming weeks as momentum builds.
Medium-term objective: reaching $0.90 seems achievable if the current trajectory remains stable.
Long-term goal: The much-anticipated $1 milestone could be reached by the end of 2024, thanks to strong technical data and market enthusiasm.
Some analysts even believe DOGE could surpass $1 at the height of the bull market, with predictions as high as $11 based on historical rally patterns.
Read also: Is Dogecoin’s rise over or just beginning?