- DOGE’s potential rally depends on Bitcoin’s 2024 movement.
- In the short term, market players expect Dogecoin to retrace from its recent gains.
Ranked as the ninth most valuable cryptocurrency, Dogecoin’s [DOGE] price has gained over 9% in the last seven days. This increase made it the second-best performer out of the top meme coins in the market as Pepe [PEPE] had a slightly better performance.
However, playing second fiddle at the time of writing does not mean DOGE would continue to do so. This opinion was evident in Crypto Kaleo’s post on X (formerly Twitter).
According to Kaleo, who is an analyst, DOGE was trading around the same price it was before it began a tremendous rally during the bull market of 2021.
Due to this, Kaleo opined that it could be time to keep an eye on the Dogecoin trend. At press time, the price of DOGE was $0.07. The analyst’s opinion led AMBCrypto assess the coin’s performance in 2021.
Back at the starting point
From our evaluation, DOGE exchanged hands around $0.07 in March 2021. Two months later, the coin was trading at $0.55. This move was paramount to its 13,506% all-time increase.
In another post, Kaleo noted that DOGE would begin to move higher in the $0.10 direction in the short term.
He, however, mentioned that a rise to $0.20 would depend on the Higher Time Frame (HTF) resistance. For context, an HTF indicates critical price levels to recognize support or resistance areas that could trigger a specific trend.
Here’s my playbook for $DOGE:
Sometime in the next week or two, Dogecoin finally starts to move.
When DOGE starts moving higher, it usually moves pretty fast. I wouldn’t be surprised to see a daily from here to somewhere in the 9 – 10 cents range, chop there for a bit, then… pic.twitter.com/BN1AqSe8d2
— K A L E O (@CryptoKaleo) November 9, 2023
Kaleo further added that DOGE having a replica of the 2021 trend would depend on Bitcoin’s [BTC] movement, noting that a rally might only occur by 2024.
Despite the analyst’s viewpoint, a larger part of the market was not optimistic about the short-term performance of DOGE.
This was shown by the coin’s weighted sentiment. The metric takes into account the unique commentary linked to an asset. When the weighted sentiment is positive, it means the market is enthusiastic about an upward movement.
Lower expectations, climbing activity
At the time of writing, Dogecoin’s weighted sentiment was down to -0.71, implying that the perception that the coin’s uptrend may reverse was increasing.
Meanwhile, activity on the Dogecoin network has been increasing.
An evaluation of Santiment’s on-chain data by AMBCrypto showed that the 24-hour active addresses climbed to 125,000. Active addresses are the number of distinct addresses participating in transfers.
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So, the increase in the metric means that there has been more interaction with DOGE over the last few days.
While active addresses can positively affect price action, it would take more than the number mentioned above to take DOGE close to its All-Time High (ATH).