Is Dogecoin (DOGE) Ready to Rocket? Price Analysis Indicates a Breakout Imminent

• Dogecoin price has faced an immense resistance level of around 10 cents that could see the meme lord retrace in the near term to gain more bullish momentum.
• The recent DOGE breakout from a macro triangle signals the onset of a fresh bull run that will take place in the next 24 months.

Dogecoin (DOGE), the flagship meme coin supported by tech billionaire Elon Musk, has grown into a respectable online community with deep liquidity on various web3 protocols. The meme lord with more than 6.38 million holders as of this report has continued to attract more speculative traders despite Musk facing a $258 billion lawsuit for allegedly pumping and dumping DOGE during the prior crypto bull markets. Additionally, Dogecoin has enjoyed significant support through its proof-of-work (POW) consensus mechanism, whereby the current hash rate as of this report stands at around 854 TH/s and a mining difficulty of about 12.76 million. Notably, the Dogecoin network differs from Bitcoin’s in the fact that the latter is capped at 21 million while the meme lord is uncapped in the total supply.

Nonetheless, the Dogecoin network continued to enjoy tremendous support from the Musk family of companies including SpaceX, Tesla, and the X platform. For instance, the DOGE-1 moon mission under the Geometric Energy Corp recently received approval from the National Telecommunication and Information Administration (NTIA). Notably, the DOGE-1 mission was launched in May 2021 and is expected to happen early next year aboard a SpaceX Falcon 9 rocket. Earlier on Friday, one of the Dogecoin contributors received a confirmation from Musk that 2024 will be the year of X platform payments. With Dogecoin expected to be at the forefront of X platform payments, the demand for the meme lord will continue to skyrocket amid the mass adoption of digital assets around the world.

2024 will be the year of 𝕏 Payments

pic.twitter.com/vgIARZjOfx

— DogeDesigner (@cb_doge) December 29, 2023

Closer Look at Dogecoin Technical Analysis

Since the late-November Dogecoin price breakout, the meme lord has been consolidating below the 200 weekly Moving Average (MA). The rising number of DOGE addresses has bolstered the bullish outlook with the weekly Relative Strength Index (RSI) attempting to rally above the 70 level for the first time since April 2021. Having established a strong support level around $0.06 during the past 12 months, DOGE price is much more likely to continue on a rising trend in the coming. 

If history repeats and DOGE price action follows the same path as the 2018/2020 bear market, the meme coin could then get trapped in a horizontal consolidation before an imminent breakout toward its all-time high (ATH). In the short term, DOGE price could retrace to the support level around $0.081 before continuing with the uptrend towards the next psychological resistance zone of around 16 cents.

DOGE Market Outlook and Price Action

Dogecoin has remained one of the top ten most valuable digital assets with a market capitalization of about $13.1 billion and a 24-hour average trading volume of around $435 million. According to the latest market data, DOGE’s price gained more than 15 percent in December to trade at No coins selected.