Is Dogecoin ready to break $1? Here’s what DOGE needs to get there

DOGE has regained momentum after a week of consolidation within the $0.40 range.
To curb volatility and reach the $1 milestone, DOGE needs a “secret Santa” – a catalyst or powerful support.

As a seasoned analyst who has weathered numerous market cycles and witnessed the rise and fall of countless altcoins, I find myself cautiously optimistic about Dogecoin [DOGE] reaching its elusive $1 milestone. While the memecoin’s resilience is undeniable, its inherent volatility remains a formidable challenge.

Attention shifts once more towards the significant $1 level, as two leading altcoins manage to regain this hard-to-reach threshold following a period of volatile price movements over several years.

Nevertheless, Dogecoin [DOGE] trails its target, not managing to hit the mark even with a substantial increase of over 10% in the past week. The unpredictable character inherent in meme-based cryptocurrencies often results in them displaying more volatility compared to other alternative coins.

Despite being a meme coin, Dogecoin has demonstrated remarkable tenacity, spearheading the ‘supercycle’ during the last bull market, boosted consistently by high-profile endorsements.

Currently, there’s a 16% surge over the past day that has outperformed other similar assets, along with an increase in open interest. Notable analysts are pondering if DOGE might reach $0.60 next. Could this trajectory potentially qualify it as a member of the exclusive “$1 club”?

High-risk, high-reward appeal could delay $1

Approximately a week back, DOGE experienced consolidation after hitting $0.40 in the post-election period, which was marked by daily increases surpassing 25%.

It was only natural that a correction would occur, given the surge in trading volume surpassing 17 billion, which suggested the market was becoming excessively heated.

However, the pullback was brief, with DOGE rebounding in a 10% daily surge, now trading at $0.46.

This bounce back indicates that the bullish sentiment remains strong, which is crucial for a memecoin as it heavily depends on its community’s backing during downturns.

Based on the current trend, market analysts are now pondering if another surge might propel Dogecoin (DOGE) closer to its record peak of $0.73, and even surpassing the $1 mark.

Although DOGE’s impressive 30% increase over the past week places it first on the meme coin leaderboard, achieving this goal could potentially remain difficult.

Source : Coinglass

Over the past week, it’s worth noting that spot traders have amassed approximately $180 million in Dogecoin (DOGE) tokens. This trend seems to correspond with the coin’s consolidation period.

As a researcher, I find it intriguing to observe that astute investors seem to have seized the opportunity presented by the dip in Dogecoin’s price, thereby acquiring it at a reduced cost. This strategic move appears to have significantly dampened the efforts of bears to impede its bullish trend.

The pattern that emerges after a Bitcoin halving has increased enthusiasm, as people predict an enormous surge in Dogecoin by the end of the quarter and a possible steep increase, resembling a parabola, happening as early as 2025.

The current Open Interest stands at an all-time high of $3.77 billion, indicating that futures traders are heavily wagering on continued price increases.

Although it shows positive signs, Dogecoin carries potential risks. Currently, its Relative Strength Index (RSI) has moved into an overbought state, which may lead to inexperienced investors selling off, potentially causing a brief market correction in the short term.

While many altcoins are usually kept for the long haul even during market dips, meme coins such as DOGE are more frequently sought after due to their allure of potential high returns paired with a higher level of risk.

This inherent volatility leaves them vulnerable to abrupt market swings, presenting the biggest challenge to DOGE’s $1 milestone.

How can DOGE overcome volatility to hit $1?

For Dogecoin (DOGE) to double its current market value of $0.46 and reach $1, it would require a rise of about 117.39%. In the last 30 days, DOGE has experienced a significant jump exceeding 200%, with both broader economic factors and specific elements contributing to this upward momentum.

In other words, while Elon Musk’s endorsements can provide short-term advantages, the long-term drive will rely heavily on significant investors taking action during market fluctuations triggered by swift trader activity to stabilize the market.

Over the past 30 days, whales have steadily withdrawn DOGE from exchanges.

Significantly, there’s been an increase in accumulation over the past 10 days, as around 1.12 billion Dogecoin tokens have been amassed, pushing DOGE above the significant $0.40 psychological barrier.

Source : IntoTheBlock

This underscores how whale support is crucial for Dogecoin to surpass key price targets.

Read Dogecoin’s [DOGE] Price Prediction 2024–2025

If the factors detailed earlier help drive DOGE’s price to $0.60, surpassing this level and achieving $1 will largely depend on substantial support from significant investors or long-term holders (HODLers).

Therefore, monitoring whale activity regularly is vital to forecasting potential price movements.

2024-11-23 20:11

High-risk, high-reward appeal could delay $1

How can DOGE overcome volatility to hit $1?

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