Dogecoin Gains 18% Last Week, Eyes 200% Surge
2min read Dogecoin (DOGE) has recently hit a key support level on the weekly chart, suggesting a potential major price move. Currently trading at around $0.166, DOGE is showing signs of a potential breakout if it manages to move above the $0.17 resistance level. This resistance level is crucial as it could trigger a run toward $0.21 and potentially reach $0.29, according to technical analysts.
The cryptocurrency fell in the past 24 hours, but analysts suggest this dip could be beneficial for its long-term trajectory. DOGE gained 18% last week, and similar momentum could continue if both spot and derivative market traders push the asset upward. The cryptocurrency is currently trading at an ascending support line on the weekly chart, which previously acted as a catalyst for DOGE’s rise to $0.48.
Market activity shows increased interest in Dogecoin. The Open Interest (OI)-weighted Funding Rate and the Volume-Weighted Funding Rate are both showing gradual market rises, indicating that unsettled contracts are mostly held by long traders. This positive sentiment is backed by substantial buying volume, suggesting that market participants are positioning themselves for an upward movement in DOGE’s price. Spot market activity has been strong, with traders purchasing $8.9 million worth of DOGE recently, following several consecutive days of buying.
The Long-Short Liquidation Ratio reveals that sellers have experienced more losses, totaling $630,000. Long traders have recorded comparatively lower losses, indicating increased buyer activity. If Dogecoin can break above the $0.17 resistance level, analysts predict it could run toward $0.21 and potentially reach $0.29. However, maintaining support at $0.13 is crucial for this bullish scenario.
The $0.38 level represents a major target as it contains significant liquidity clusters in the market. For DOGE to reach this milestone, it must maintain upward momentum. Some technical analysts believe the current price pattern resembles past accumulation phases that preceded major rallies. One analyst pointed out that DOGE is showing the same technical formation it did before its massive 2021 rally when it soared to its all-time high of $0.7376.
If history repeats itself, these analysts suggest the price could surge by 200% to 330%, though this represents a long-term projection rather than an immediate price target. The cryptocurrency would need to overcome several hurdles to reach such heights. With a current circulating supply of 148.83 billion DOGE, the dynamics for reaching previous peaks have changed. To match its former high of $0.7376 with the current supply, Dogecoin would need a market capitalization exceeding $110 billion. For DOGE to reach $1, it would require a market cap of about $148 billion.
While technical indicators are beginning to tilt bullish, they still reflect caution among traders. A confirmed move above $0.17 would mark a significant shift in market sentiment and could reignite interest in higher price predictions. The coming weeks will be critical for Dogecoin as it tests these key resistance levels and attempts to build on recent momentum.
