Dogecoin Dips After 50% Surge as Bulls Defend Key Support

• Dogecoin trades at $0.3842 with 24-hour volume up 35.34% to $36.67B.
• A bullish flag pattern suggests a 45% upside if $0.35 support.

The global crypto market has seen a 3.27% decrease, bringing the total market cap to $2.9 trillion, while the 24-hour trading volume is down by 3.69% to $307.23 billion. Dogecoin (DOGE) is currently trading at $0.3842, with its 24-hour trading volume showing a significant surge of 35.34% to reach $36.67 billion. Although DOGE saw a slight daily dip of 6.55%, its market cap remains robust at $56.39 billion, securing its place as the sixth-largest cryptocurrency.

In the past 24 hours, Dogecoin jumped 51.94% to reach an intraday high of $0.4198, marking its highest level in over three years. This rally has pushed Dogecoin’s year-to-date gains above 140%. Driven by major market-moving events, including Donald Trump’s election victory and an unexpected rate cut by the Federal Reserve. 

These factors have heightened investor interest in DOGE, propelling it past XRP and USDC in market capitalization rankings. Within just a week, Dogecoin added $36.92 billion to its market cap, underscoring the strong sentiment among investors.

A notable 47 million DOGE was transferred from an unknown wallet to the popular trading platform, Robinhood. Similarly, another large transaction of 60 million DOGE was transferred from an unknown wallet to Robinhood as well. This could indicate growing institutional or whale interest in DOGE, possibly anticipating further price movements. On top of these large transfers, a dormant address containing 754,472 DOGE (worth $292,448) was recently activated after 10.8 years of inactivity, adding further attention to DOGE’s ongoing developments.

DOGE in Current Market

Dogecoin’s technical analysis reveals a bullish flag pattern on shorter time frames, hinting at the potential for further gains if the asset can hold above the $0.35 support level. This pattern suggests an upside potential of around 45%, with a target at the $0.56 resistance level. 

The Relative Strength Index (RSI) sits at 80.32, which places DOGE in an overbought condition. While this could signal a short-term correction, the strong trading volume suggests that the uptrend may continue. 

If Dogecoin breaks through the $0.56 resistance, the market could see an even larger rally as new investors join in. Conversely, a dip below the $0.35 support might invite some selling pressure, potentially leading to a brief pullback. However, the prevailing bull flag formation, coupled with rising trading volume, paints a promising outlook for DOGE in the near term.

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