As Bitcoin maintains its strong position above $102,000, meme coins are drawing significant attention, with their collective market capitalization nearing $110 billion. Among them, Dogecoin stands out, gaining momentum as it eyes the critical $0.40 resistance level and a potential surge past $0.50.
With a $58 billion market cap—over half of the total meme coin sector—Dogecoin currently trades at $0.3994, with about 20% price appreciation in the past 7 days. Its weekly performance suggests a strong bullish trend, fueling speculation about its next move.
Technical Signals Point to Strength
Dogecoin’s price action on the 4-hour chart shows a decisive move past the 61.80% Fibonacci retracement level, signaling bullish intent. The cryptocurrency is riding a wave of optimism, forming three successive green candles and posting close to a 10% increase.
Key technical indicators further reinforce the bullish outlook. A golden crossover—where the 50-day EMA surpasses the 200-day EMA—has emerged as a widely regarded signal of an upcoming uptrend. Additionally, the 100-day EMA is nearing a crossover above the 200-day EMA, bolstering confidence in continued upward momentum.
Meanwhile, the RSI (Relative Strength Index) has entered the overbought territory, often indicative of strong buying pressure. These signals suggest Dogecoin could challenge the next Fibonacci resistance level and build on its recent gains.
Whale Activity Signals Accumulation
Large holders, often called “whales,” have been actively accumulating Dogecoin, signaling confidence in its potential. Data from Santiment reveals that whales have acquired 200 million DOGE tokens within three days. Such significant accumulation often precedes major price movements, as these investors typically act with long-term bullish expectations.
What Lies Ahead
If Dogecoin can maintain its current momentum and sustain levels above $0.40, it could target the $0.4865 swing high as its next milestone. A further breakout may propel it toward $0.52, a level that would mark a new 52-week high.
However, the market’s trajectory is rarely without volatility. For Dogecoin, key support levels at $0.3675 and $0.3463 will be crucial to watch, providing potential safety nets if the rally faces temporary setbacks.
Dogecoin appears poised to spearhead a new rally in the meme coin market, supported by technical strength and growing investor confidence. Its ability to break key resistance levels could set the stage for further gains, with the elusive $0.50 mark now within striking distance.
As the broader crypto market continues to evolve, Dogecoin’s performance may serve as a bellwether for the meme coin sector, demonstrating the enduring appeal of this unique market.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Daily Addaa’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Daily Addaa is not responsible for any financial losses.