Why Are Traders Heading Back to Dogecoin? Is This a Fleeting Drift?

Why Are Traders Heading Back to Dogecoin? Is This a Fleeting Drift?

Originally published on Coinpedia Fintech News

Dogecoin is once again attracting attention, with trading volume surging by over 35% since the early trading hours. This has led to a marginal price increase, rising nearly 5% above $0.16. Additionally, market sentiment has turned bullish since the launch of the spot Ethereum ETF.

Why the Sudden Interest in Dogecoin?

This begs the question: why have traders flocked to the DOGE price rally?

Historical Bear Market and Recent Trend Reversal

Since the onset of the 2021 bear market, sparked by Elon Musk's "Hustle" comment on SNL, traders have lost interest in Dogecoin. While the price has experienced occasional bullish momentum, these rallies have been short-lived. However, the trend seems to have shifted recently, with volume increasing since early March, boosting the token's volatility.

Technical Analysis

After a recent pullback from yearly highs above $0.22, DOGE has maintained an ascending trend and may soon reach the upper boundary of its consolidation range. This has triggered a rebound from the Gaussian channel's average levels, which remain under bearish influence.

The RSI indicator shows a positive uptrend, suggesting that prices may reach the channel's upper resistance. Technical indicators and chart patterns indicate that the recent breakout is unlikely to be short-lived, with the price expected to hit new yearly highs above $0.25.

Bullish Momentum and Potential Gains

However, traders often exhibit impatience and take profits after minor price increases. If the bulls receive sufficient support in the form of trading volume, Dogecoin (DOGE) may continue its bullish trend, defying bearish pressure.

Long-Term Outlook

A rise above $0.3 appears imminent in the early weeks of H2, potentially leading to a bullish close for 2024.