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- Analysts predict Dogecoin could hit $1 by year-end, supported by whale activity and historical price patterns.
- Macroeconomic factors and potential regulatory shifts may drive Dogecoin’s recovery, but its volatility demands cautious optimism from investors.
Dogecoin (DOGE) has bounced back from multi-month lows, posting a 24.19% increase within 24 hours to trade at $0.3352. The rebound is happening against the backdrop of a recovering crypto market, with on-chain data suggesting the possibility of further upside for the meme coin.
The trading volume of Dogecoin rose by 1% to more than $8 billion in the last day. This clear rise shows that there is strong liquidity which is boosting DOGE’s price rebound.
The trading volume has been boosted particularly by the whales’ activity, which points to the high demand for the coin. Whale transactions, which are DOGE transactions over $100,000, increased by 41.12% to $23.35 billion, data from IntoTheBlock revealed.
These indicators indicate that there is an increasing participation of big investors in the Dogecoin market. This trend is in line with DOGE’s price action, which could easily see it climb back up to its previous highs as the broader market continues to rebound.
Key Drivers of Dogecoin’s Price Recovery
Dogecoin’s recent performance is a continuation of the sharp drop from $0.4109 to $0.27 in the past week. Although the broader market had a correction with Bitcoin leading the charge, there are great fundamentals in DOGE which should see it bounce back very soon.
The market is further boosted by the rumours of the possible launch of a DOGE ETF, an exchange-traded fund. While there are no official applications filed, analysts believe that the new regulatory framework in the United States increases the chances of this product being sold.
Analyst Trader Tardigrade also shared a bullish opinion about Dogecoin. Tardigrade noted that the coin is still range-bound, but a break out may lead to a continuance of the upward movement. According to the analyst’s chart, Dogecoin has the potential to cross the $1 psychological level by year-end, thus hitting a new ATH and posting a YTD return of more than 245%.
Also, Trader Tardigrade noted that the daily RSI of Dogecoin has reached a potential rebound zone, which has been a trigger for a parabolic rise from $0.095 to $0.48. If the same pattern is repeated, then the meme coin can go up to $1.35 from the current price. The analyst also pointed out that Dogecoin is known to follow a two-step jump in its cycle and the analyst expects the next peak to be between $3 to $4 in this cycle.
However, other macroeconomic and geopolitical factors are also contributing to Dogecoin’s dynamics. Recent comments by Federal Reserve Chairman Jerome Powell that inflation worries are not going away led to risk assets sell-off including cryptocurrencies. During this period, $35.1 million worth of DOGE was liquidated, playing a role in the cryptocurrency’s short-term fluctuations.
