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Dogecoin has broken through its $0.16 resistance with rising buying pressure, consolidating just under $0.175 as investor enthusiasm for the meme coin grows. Backed by Elon Musk and increased market attention, a new bull run similar to that of 2021 appears to be on the horizon for DOGE, as technical indicators signal the potential for a significant breakout toward the $1 target.
Dogecoin’s Rising Momentum and Price Activity
Dogecoin has shown notable upward momentum in recent weeks, reviving optimism among investors. By breaking the $0.16 resistance, DOGE has positioned itself for what analysts describe as a “potential rally” with its consolidation under $0.175 suggesting that the bulls are preparing for another breakout. This price action fuels expectations of a major move, potentially pointing toward a market shakeup.
With Bitcoin surpassing $71,000, Dogecoin’s price is also experiencing a steady rise. The meme coin saw a 1.5% increase, reaching $0.1727, with a daily range between $0.1653 and $0.1727. The total market cap of DOGE stands at $25.3 billion, and 24-hour trading volume reached $2.24 billion, underscoring the strong buying interest and high liquidity. The circulating supply is noted at 146.576 billion DOGE, with no maximum supply cap, which could introduce inflationary pressure in the long term. Despite this, the current market conditions suggest a positive outlook as demand remains steady, presenting opportunities for further short-term upward movement.
Elon Musk and the Meme Coin Effect
The ongoing surge in DOGE and other meme coins is largely attributed to the influence of Elon Musk. His public endorsements of Dogecoin on social media continue to fuel interest, while Donald Trump’s economic pledges have also caught the attention of meme coin enthusiasts. DOGE is now testing long-standing resistance zones as it pushes for further gains. The promising technical indicators support the expectation that DOGE may soon enter a sustained upward trend.
Technical Indicators and Price Potential
Dogecoin’s recent price rally has investors optimistic, with the coin’s price pattern drawing comparisons to the 2021 bull run. Currently testing the upper resistance of a symmetrical triangle, the RSI indicator also aligns with this upward momentum. Technical analysis points toward Dogecoin preparing for a new bull cycle, similar to its historic rise from $0.003 to $0.72. As DOGE hovers near $0.17, analysts speculate that a similar breakout could push the coin to $1 and potentially higher, should bullish momentum persist.
In the short term, DOGE is expected to form a Golden Cross pattern, signaling the potential for a strong breakout. As in 2021, when DOGE surged from consolidation to record highs, current levels suggest that DOGE could once again reach for new peaks.
