Dogecoin (DOGE) Jumps 12%, Data Shows More Rally Ahead

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As a seasoned crypto investor with a knack for spotting trends and a penchant for meme coins, I find the recent surge of Dogecoin (DOGE) nothing short of intriguing. With my years of experience in this rollercoaster ride of a market, I’ve learned to read between the lines and the numbers – and the numbers for DOGE are looking mighty fine right now.

The cryptocurrency market is rebounding, and Dogecoin (DOGE) is among the assets that are regaining strength after hitting lows over several months. In just 24 hours, the Dogecoin price has surged by 12.67%, reaching a new high of $0.3379. Based on current trends, it seems that there could be further growth for DOGE.

Dogecoin signals more uptrend

In addition to a 24-hour price increase, Dogecoin experienced a substantial 9.6% surge in daily trading activity. Over $11.6 billion worth of transactions took place, indicating ample liquidity to fuel the meme coin’s high volume trades, which is an exceptional factor contributing to its recent price rally.

Over the last seven days, Dogecoin plummeted from a peak of $0.4109 to as low as $0.27. Although Bitcoin‘s correction was primarily responsible, Dogecoin was among the altcoins that experienced significant losses. As the market recovers, Dogecoin hasn’t regained its weekly high yet, indicating potential for growth.

Data from on-chain indicators suggests a high level of activity within the Dogecoin (DOGE) community. Large transactions, as observed on IntoTheBlock, indicate significant activity. This specific metric, which tracks DOGE transactions valued at least $100,000, experienced a surge of 41.12%, reaching an impressive total of $23.35 billion.

Given a strong influx of interest from these types of investors, it’s likely that the price will rebound quickly enough to make up for the losses experienced over the past week.

Key fundamentals to watch

Keeping an eye on the key factors supporting Dogecoin’s price increase is essential. There’s speculation that a Dogecoin Exchange-Traded Fund (ETF) could soon materialize, given the favorable changes in the US regulatory environment.

Although no asset manager has actively pursued such a filing yet, various experts have contemplated this scenario. Essentially, Dogecoin (DOGE) is currently undervalued across multiple timeframes, and renewed bullish sentiment around Bitcoin retesting its peak could potentially fuel positive energy for the meme coin.

As a researcher studying the cryptocurrency market, I posit that Dogecoin could potentially regain its $0.4 price point in the near future given a successful flip of the $0.35 level from resistance to support. In other words, if the market dynamics shift such that the $0.35 level starts acting as a floor rather than a ceiling, we might see Dogecoin prices rise towards $0.4.

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2024-12-21 14:04