Dogecoin Eyes Recovery: Can DOGE Hit $1?

Dogecoin’s recent price action suggests a potential recovery, supported by steady on-chain activity and technical indicators hinting at a bullish trend.

Bullish Signals Emerge for DOGE

Dogecoin has displayed several bullish signals, particularly on its 4-hour chart, where the Relative Strength Index (RSI) remains a key indicator. At the time of writing, the RSI hovered near 48, suggesting a possible rebound as it trends upward despite the broader downtrend in DOGE’s price channel.

A notable bullish divergence occurred when DOGE retested the upper boundary of its broken channel near $0.255. This test marks a critical juncture: a successful breakout could confirm a reversal, while failure may result in a continuation of the downtrend.

DOGE–Bullish Signals (Source: Trader Tardigrade/X)

If Dogecoin maintains momentum above this resistance level, it could trigger a rally toward the next key barrier at $0.27. Breaking past this level could push DOGE back to $0.50 and potentially as high as $1 before mid-year. On the downside, a failure to hold above $0.255 might see DOGE retrace to $0.24, reinforcing the memecoin’s volatility and speculative nature.

On-Chain Activity Signals Stability

Despite price fluctuations, Dogecoin’s on-chain metrics indicate a steady level of network engagement. The number of daily active addresses remains strong, aligning with notable transaction volumes and significant whale activity.

In December, active addresses peaked in conjunction with a surge in transaction volume, briefly bolstering the price. Additionally, large whale transactions exceeding $1 million have shown periodic spikes, often correlating with major price movements.

Key Market Movements (Source: Ali/X)

At press time, DOGE traded at $0.252, with transaction volumes suggesti