Could Dogecoin (DOGE) Make a Comeback in 2024? Uncovering Hidden Insights from On-Chain Data

As we journey through 2024, Dogecoin seems to be gearing up for some noteworthy price gains in the coming times. This meme-inspired cryptocurrency has reached notable milestones, like surpassing five million addresses holding a balance. Additionally, there was a considerable uptick in transactions in December. These accomplishments not only highlight Dogecoin’s expanding market presence but also suggest a certain level of underlying resilience.

The flurry of action towards the end of last year resulted in a significant price surge in January. Yet, the market’s ups and downs have now prompted a correction, placing more than half of Dogecoin holders in a profit zone running from early November 2023. This milestone could be a significant turning point, possibly serving as a launching pad for a potential rally in the future.

By taking a closer look at the Dogecoin chart, the market is likely at a bit of a crossroads. The price action shows a kind of holding pattern around the $0.08 (£0.63) mark, with Dogecoin bouncing between its moving averages. These moving averages usually play a dynamic role in support and resistance levels. At the moment, there’s a solid resistance at approximately $0.084 (£0.066), and the support level hangs around $0.077 (£0.061). Any distinct movement beyond these levels could be a sign of the next big trend for Dogecoin.

Typically, there’s a cautiously optimistic outlook for potential price movements in Dogecoin. If the support level manages to hold its ground amidst the pressure and transaction volumes keep rising, there’s a chance we might see a breakthrough above the resistance level in the near future. Situations like these could set the stage for a rally, especially if the overall sentiment in the broader crypto market remains positive. This is especially evident with Elon Musk’s X platform, planning to replace PayPal, Visa and other modes of payments. Conversely, news about the X payment launch has played a role in the recent Dogecoin uptick.

If the support level gives in to bearish market forces, we might experience a retest of lower price levels, possibly dipping into the sub-$0.07 (£0.055) range. A reminder for investors to tread carefully and keep an eye on volume-supported moves as they may serve as indicators of the strength behind subsequent price actions.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.