Dogecoin Price Shows Significant Strength, Vulnerable to Correction – What’s Next?
Bitcoin is back above $100K, which is expected to spread bullish waves in the markets. While the other tokens failed to keep pace, Dogecoin is trying hard to maintain a decent upward trend. The price is trying hard to rise above $0.4 from the beginning of 2025. While recent whale moves indicate a big move is coming, technicals support a broader correction on the horizon.
What's next for the Dogecoin (DOGE) price rally? Will a healthy run to $1 trigger in 2025?
Retail traders usually follow whales, believing it to be a key signal for the next price action. Optimism around the token will have a positive effect on the price of DOGE due to the increase in their reserves. Whales have continuously stocked DOGE in 2024 and stopped in November. Meanwhile, the 2021 bull run levels have continued and passed. Currently, more than 5000 wallets hold more than 1 million DOGE, which are flashing major labor tokens.
On the other hand, the active address count stays in the average range, so retailers avoid jumps. Mainly because the techniques don't support the bully narrative. The TD sequence indicator, which indicates the exact timing of the trend reversal, remains bearish in anticipation of a price correction. Secondly, the weighted social sentiment is around 0.60, which means that the public remains pessimistic about Dogecoin's upside potential. What's next for the DOGE price rally?
The DOGE price chart suggests that the bulls are trying hard to continue the bullish trend as the bulls have been struggling to defend the 50-day MA. These levels are providing a strong base as the price fails to initiate a strong retracement to higher ranges. This is possible due to the decrease in volume which is a hindrance to the progress of the procession. Meanwhile, the rising RSI seems to have halted the trend, vindicating a winning claim.
Regardless of all the claims, the price of Dogecoin could still disrupt the narrative if it is confirmed to rise by $0.4 from 0.786 FIB in the next few hours. This move could pave the way for a healthy uptrend, possibly reaching 2024 highs of $0.55 while the new ATH at $1 remains very different.
