For the first time since 2021, Dogecoin (DOGE-USD) has marked a bullish monthly close on several momentum indicators, a development that has not gone unnoticed by the cryptocurrency community. These bullish monthly indicators show a possible end to DOGE’s calmer trading period, setting the stage for what bulls hope is a repeat of history and a spike in its value.
Memecoin analysts have identified Dogecoin as a prime candidate for a ‘buy and hold’ strategy, foreseeing at least a 3x to 4x increase in value. However, while Dogecoin’s gains may not mirror the astronomical rise of the last cycle, its position as a safer meme coin bet remains strong.
Trading Volumes and Active Addresses: A Surge of Interest
IntoTheBlock‘s data details the growing interest in Dogecoin, with a 90% increase in large transaction volumes and a 37.7% rise in daily active addresses. This uptick in engagement and investment indicates a robust and active Dogecoin community, further buoyed by significant exchange outflows. Despite a recent 10% dip in its value, these underlying strengths suggest that Dogecoin’s market position is more resilient than it appears at first glance.
Historical Patterns and the Path to $1
Some historical patterns for Dogecoin, the memecoin market, and the broader cryptocurrency space suggest that Dogecoin could be at the cusp of a massive parabolic bull run. The most notable historical data hinting that Dogecoin’s performance could excel is how similar its present price action is to the consolidation phase from November 2018 to its parabolic rise between December 2020 – April 2021.
Dogecoin ended March 2024 with a gain of +87.22%, the best monthly performance since October 2022. Similarly, March’s close is the highest monthly close since November 2021. However, from a technical analysis perspective, there are some warning signs that Dogecoin may see a pullback to retest prior resistance in the $0.134 value area.
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