- Dogecoin price has surged 27% in the last 24 hours, and is up by 130% in the past eight days
- This significant increase could potentially push DOGE towards the $0.279 resistance level
- Investors are advised to exercise caution and be prepared to buy during dips above the $0.116 support level
Dogecoin price has displayed impressive momentum and continues to rise following last week’s 78% rally. Given the high volatility associated with meme coins, this upward movement in DOGE is not unexpected.
Also read: Week Ahead: Meme coins surge as BTC rally continues
Dogecoin price reaches new heights
Dogecoin (DOGE) price broke out of a multi-month declining trend line in October 2023, with a parabolic rally beginning in February 2024. Over the past eight days, DOGE has surged by 130%, surpassing the $0.116 and $0.181 weekly resistance levels.
Given the current market trend dominated by meme coins, the substantial rally in DOGE is not surprising. However, the scenario could change rapidly once Bitcoin sets a new all-time high.
Until then, meme coins are likely to continue their upward trajectory.
Supporting this remarkable rally in Dogecoin price is the Relative Strength Index (RSI), which has reached the 85 level for the first time since May 2021. The green Awesome Oscillator (AO) histograms above the zero line indicate a surge in bullish momentum that is supporting this uptrend.
Read more: Memecoins market capitalization exceeds $50 billion, surpassing NFTs and DeFi sector
DOGE/USDT 1-week chart
IntoTheBlock’s Global In/Out of the Money (GIOM) indicator shows the next cluster of resistance levels ranging from $0.178 to $0.671. Around 11 billion DOGE was bought by 720,000 addresses at an average price of $0.331. Some of these addresses are currently at breakeven, while others are Out of the Money.
Investors with significant unrealized profits may want to consider taking some profits around $0.331, as many holders might sell at breakeven at this level.
DOGE GIOM
While the outlook for Dogecoin price remains bullish, a bearish reversal is unlikely, given the current upward market trend seen in recent months. Investors may want to consider implementing dollar-cost averaging up to the next key support level at $0.116.
However, if Dogecoin price turns the aforementioned weekly support level into resistance with a weekly candlestick close below it, the bullish outlook for DOGE would be invalidated.