Dogecoin (DOGE), the world’s largest memecoin by market capitalization, has staged a remarkable comeback. On Thursday, DOGE rallied sharply, gaining nearly 9%, solidifying its position as one of the most significant gainers in the cryptocurrency market. The surge comes after a period of prolonged downtrend, raising eyebrows among cryptocurrency analysts.
This surge in DOGE’s price, accompanied by a 109% spike in trading volume, has piqued the interest of industry experts. Prominent cryptocurrency analyst Ali Martinez highlighted a significant breakout in both DOGE’s price and Relative Strength Index (RSI) from a multi-month downtrend. This, according to Martinez, underscores DOGE’s newfound strength. He also observed a buy signal from the Super Trend indicator, a widely-used technical analysis tool for identifying market trends and potential trading opportunities.
Another influential Dogecoin analyst, known only as Kevin, echoed Martinez’s sentiments regarding the breakout but urged caution, emphasizing that DOGE still needs to break through critical resistance levels for sustained momentum. “Breaking 0.1434 will be a major milestone,” Kevin noted.
The surge has pushed DOGE to levels not seen in nearly two months. Technical indicators like the Moving Average Convergence Divergence (MACD) have also flashed buy signals, further supporting the bullish sentiment. The MACD, commonly used to gauge an asset’s overall trend, indicates that DOGE’s upward momentum is gaining traction.
Furthermore, IntoTheBlock’s data reveals that the recent rally has led to net outflows from exchanges, indicating that traders are holding onto their DOGE for potential future gains. This is a positive sign, suggesting that the market is optimistic about DOGE’s long-term prospects.
At the time of writing, DOGE is trading at $0.1185, reflecting an 8.88% increase in the past 24 hours. While this bullish momentum is encouraging, it remains to be seen whether DOGE can sustain its upward trajectory and break through the key resistance levels identified by analysts.
