Dogecoin has demonstrated the ability to experience significant price rise in the near future as 2024 goes on. The meme currency has hit many noteworthy benchmarks, including as reaching over 5 million addresses with a balance and experiencing a notable surge in transactions in December. These accomplishments have demonstrated Dogecoin’s increasing market share and suggested an underlying resiliency.
There was a noticeable price increase in January as a result of the surge in activity at the close of the previous year. Over half of Dogecoin holders are now in a profit level reminiscent of early November 2023 due to the market’s volatility-caused price drop. This benchmark has the potential to be a pivotal moment and a future rally’s launchpad.
Examining the given Dogecoin chart shows that the market is reaching a turning point. The price movement suggests that Dogecoin is consolidating around the $0.08 mark, moving averages acting as dynamic levels of support and resistance. The important local resistance is still there at about $0.084, while the support level is close to $0.077. A clear break through these barriers would indicate Dogecoin’s next big thing.
Given the available on-chain data and the state of the market, a scenario of possible price movement for Dogecoin appears cautiously hopeful. A breach over the resistance level may be imminent if the support level is able to withstand the strain and transaction volumes keep increasing. A rally may be sparked by such a situation, particularly if the general opinion of the cryptocurrency market is favourable.
Conversely, if negative market forces prevail and the support gives way, we can see a retest of lower price levels, which could put the sub-$0.07 zones under pressure. A move that is supported by volume can be used by investors to gauge the strength of the next price movement, but they should proceed with caution.
