The broader Crypto market is facing a minor setback this week.
This issue has affected the memecoin market, with major players like SHIB, WIF, PEPE, and BONK showing weakened price action.
Amid the stagnancy, Dogecoin appears poised to retake control.
Its position above the $0.228 price level and an incoming breakout from a bullish pennant could be the key to an incoming rally.
Dogecoin will likely hit its previous all-time high of $0.73 or even travel higher to the psychological $1 mark.
The memecoin market, which was once leading the rest of the Crypto sector, is now showing signs of cooling off.
Available data shows a striking decline in this sector's metrics, like trade volumes and overall market performance.
However, amid this broader market downturn, certain cryptocurrencies, including Dogecoin, are gearing up for explosive price movements soon.
Here's why Dogecoin could soon be on the verge of an 85% rally straight up to $0.7 or even $1.
According to data from CoinMarketCap, the memecoin market had a few standout successes among its newcomers.
One good example is FARTCOIN, which, despite the odds, registered a 75% price increase in the last week.
However, many of the sector's top cryptos, such as Shiba Inu, Floki, WIF, and others, are currently in the middle of a bearish storm.
Memecoins and their performance
CoinMarketCap data shows that trade volumes have fallen from around $30 billion to around $14 billion so far.
This trend has caused many of these memecoins to stagnate, especially with the recent state of high-profile scams, including “Hawk Tuah," which is under investigation after losing more than 95% of its market cap within 24 hours of launch.
Amid the market’s struggles, Dogecoin is showing a great deal of strength compared to the others.
For example, the cryptocurrency moved upwards by a staggering 350% in 2024, which aligns with the general outlook of Bitcoin and the rest of the market.
Certain factors like Elon Musk’s Department of Government Efficiency (D.O.G.E.) initiative have boosted the memecoin's prospects, keeping it steady above key supports.
The memecoin recently broke out of a two-year consolidation range around 10 November, after crossing the crucial $0.2278 resistance.
Dogecoin’s resistance breakout
This move turned out to be one of the biggest catalysts for a Dogecoin comeback and invalidated a bearish double-top pattern from April.
The memecoin is now trading above most of its key moving averages, which indicates that the bulls are gaining control of things.
Dogecoin's resilience, so far, isn't all.
The memecoin’s technical indicators point towards further upside potential, according to the bullish pennant pattern on the 4-hour chart.
Dogecoin bullish pennant
This, of course, indicates that Dogecoin is merely in a consolidation and could be on its way toward continuing its upward trajectory.
In essence, if Dogecoin followed through and broke above the current resistance around $0.4, its price could shoot up to the next price target of around $0.7383 (its previous all-time high).
A price rally to this target would constitute an 82% price movement and, if market conditions align, could even set the stage for a further stretch to the psychological $1 mark.
So, what does Dogecoin need to make this happen?
To sustain its momentum, Dogecoin needs support from the broader market. Bitcoin's performance remains highly important, considering how data from IntoTheBlock shows that Dogecoin has a 90% correlation with Bitcoin, as illustrated.
Dogecoin's correlation with Bitcoin
Bitcoin’s reach for the $110,000 price level could be a major factor that ignites a Dogecoin pump.
Another factor that Dogecoin needs to rally is Whale activity.
Recent data from Santiment, as highlighted by Crypto analyst Ali Martinez, shows that whales are ramping up their Dogecoin holdings.
This week, on Tuesday alone, this cohort of Dogecoin holders moved 5.8 billion dormant DOGE tokens.
Put simply, the whales are highly interested in Dogecoin.
DOGE indicators and Bitcoin's 6% price increase from the weekly perspective show growing investor interest.
The movement of these idle tokens shows either profit-taking or repositioning by these large holders.
In the same way, as token circulation rises, Dogecoin could attract more speculators and be ready for a breakout soon.
While the broader memecoin market continues to face challenges, Dogecoin's position could help it to lead the next rally within the space.
If market conditions align, DOGE could capitalize on its current momentum and achieve some of the most impressive price milestones in the altcoin season.
For now, traders should consider monitoring key resistance levels to gauge the broader crypto market's activity.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.