Dogecoin (DOGE) has shown impressive bullish momentum, crossing the $0.36 resistance level on Tuesday with a 13% gain within a 24-hour period. The meme coin outpaced rivals such as Shiba Inu (SHIB) and PEPE, gaining substantial attention in the crypto community. This surge comes as speculative fervor intensifies ahead of Donald Trump’s upcoming inauguration, drawing a segment of crypto traders betting on market volatility.
Dogecoin’s recent surge marks a shift in market sentiment. After consolidating near $0.33, DOGE has seen strong upward movement, with bulls taking charge. The price rally has been fueled by renewed retail interest and growing enthusiasm from social media, as speculative traders continue to bet on potential upside.
At the time of writing, Dogecoin is holding steady above key support levels, trading at around $0.36. The cryptocurrency’s recovery appears poised to continue, with bullish speculators eyeing the $0.40 resistance in the coming sessions. This marks a significant recovery from earlier lows seen earlier this month.
From a technical standpoint, several key indicators are suggesting that Dogecoin’s bullish momentum could persist. The cryptocurrency’s recent climb above the Volume-Weighted Average Price (VWAP) suggests institutional buying pressure, which is supported by a notable increase in open interest. This is a positive sign for those betting on further gains.
The Accumulation/Distribution Line (ADL) at 1,573 indicates steady capital inflows, suggesting that buying interest remains strong. These factors point to a likelihood of sustained upward momentum for DOGE, especially if the broader crypto market continues to show recovery.
Should the momentum continue, Dogecoin could target the $0.40 resistance level, with further upside potential toward the $0.45 mark if DOGE manages to break through the $0.4007 resistance. Traders holding leveraged long positions could amplify these gains, creating a compounding effect that pushes prices higher.
The shift in market sentiment towards Dogecoin, spurred by external events like Trump’s inauguration, could further fuel the rally. Retail investors and speculators are likely to continue driving the price upward as social media-driven hype remains strong.
While the bullish outlook for Dogecoin remains intact for now, there are risks on the horizon if the cryptocurrency fails to hold above the critical $0.35 support level. A breakdown below this level could trigger profit-taking, causing a potential liquidation of leveraged positions and leading to a reversal in price action.
If DOGE fails to maintain its position, it may revert towards the Keltner Channel midline at $0.3469, signaling a potential loss of bullish momentum. In this case, consolidation or further downside could follow, as the market would likely assess the sustainability of Dogecoin’s recent rally.
Dogecoin’s impressive rally to over $0.36, along with its outperformance of rival memecoins like SHIB and PEPE, highlights the growing enthusiasm in the market. With strong technical indicators supporting its upward trajectory, DOGE appears poised for further upside, particularly as macroeconomic concerns ease. However, the coin’s future performance will depend on its ability to hold key support levels and maintain bullish momentum in the face of potential market volatility. For traders, keeping an eye on resistance levels, market sentiment, and institutional activity will be critical in navigating Dogecoin's price action in the coming days.
January 2025, Cryptoniteuae