- Dogecoin (DOGE) shows signs of a potential price breakout after months of range-bound trading.
- A high-volume breakout in November 2023 propelled DOGE to a new yearly high of $0.108.
- Market analysts observe growing strength in DOGE as it attempts to break out of a short-term descending channel.
The meme-inspired cryptocurrency Dogecoin (DOGE) appears primed for a price breakout after multiple months of range-bound trading. DOGE has been constrained under a long-term descending resistance trendline since its meteoric rise to fame in early 2021.
However, a high-volume breakout in November 2023 allowed DOGE to surge to a new yearly high of $0.108. According to market analysts, DOGE is exhibiting growing signs of strength after its pullback from local highs. The token is attempting to break out of a short-term descending channel by improving network fundamentals.
Rise in Dogecoin addresses depicts rising interest
Crypto trader Ali Martinez noted the rising creation of new DOGE addresses—a positive indicator of expanding on-chain activity. With its passionate community engagement, DOGE continues to remain among the most widely held tokens globally.
After its breakout in November, DOGE set its sights on a horizontal resistance zone between $0.105 and $0.110. The area near $0.108 marked the local top as bullish momentum waned. Since then, DOGE has traded in a corrective descending channel, finding reliable support near $0.087.
The ability to hold above critical support levels indicates sustained buyer interest. DOGE appears poised to make another push towards its overhead resistance target. The weekly and daily Relative Strength Index (RSI) also point to gathering upside momentum.
The months ahead promise to be eventful for the popular meme token as it attempts to reclaim bullish momentum. DOGE continues to enjoy feverish community engagement that has become a staple of the token’s identity. If improved network usage statistics persist, DOGE could be primed for an explosive move in 2024.
