Dogecoin is preparing to reach its annual high

The popular memecoin Dogecoin (DOGE) has been in the green zone for a long time and is showing strong bullish momentum. Buyer support could push the cryptocurrency to $0.23 before the end of this year.

Let’s figure out why Dogecoin (DOGE) is growing and at what levels local maximums and minimums await memcoin.

Bullish Outlook for Dogecoin

Lately, Dogecoin has been showing very impressive dynamics: memcoin grew up by 23+%, 35% and 41+% over the past seven, 14 and 30 days, respectively. According to Santiment, this could be followed by the start of a full-fledged rally.

The MVRV indicator, which tracks the profit-to-loss ratio among long- and short-term holders, confirms the bullish thesis. The chart below shows that for the first time since July, the indicator values ​​have risen into the positive zone. This is a positive signal – this position of the indicator means that long-term cryptocurrency hodlers are now in profit.

MVRV ratio for Dogecoin. Source: Santiment

Meanwhile, the number of new and active addresses on the Dogecoin network has increased significantly. This means that user activity supports price growth. Also, the growth in the indicator hints that retail investors are actively opening positions in DOGE. This makes the risks of a correction less likely, and the prospects for a continued rally more likely.

Statistics of addresses in the Dogecoin network. Source: IntoTheBlock

DOGE forecast: 30% growth possible

At the time of writing this analysis, DOGE is trading at $0.1703, having risen in price by just under 1% over the past 24 hours. On the daily chart (attached below) it is clear that memcoin is holding just above the supply zone at $0.16.

Dogecoin has had difficulty breaking above this level on more than one occasion. For example, in August, the token rolled back from the barrier by $0.16 and dropped to $0.13. In June, the rate fell all the way to $0.10 after an unsuccessful attempt to storm the same resistance.

Now that DOGE has already successfully broken higher, the chances of continued growth increase significantly. In addition, memcoin has secured the $0.10 level as strong support that will protect it from a possible pullback.

Dogecoin daily chart analysis. Source: TradingView

The maximum price point for Dogecoin within 2024 is $0.23. However, if activity on the memcoin network drops or demand decreases significantly, the bullish forecast risks not coming true. Then DOGE will wait for a drawdown to $0.14.

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Source: Cryptocurrency

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