Dogecoin (DOGE) Price Prediction: FOMO Sets the Stage for a Major Rally, Targeting New ATHs

Dogecoin [DOGE] saw a significant surge in retail activity, marking a phase categorized by intense retail participation, as evidenced in the recent analysis.

output: Retail traders are flocking to Dogecoin [DOGE], setting off a chain of events that could lead to another price dip, according to a recent analysis. This period, identified by a spike in retail activity, has historically signaled an impending downturn in DOGE’s price, as was the case in May 2024, January 2023 and May 2021.

According to market analysts, this surge in activity is usually attributed to FOMO (Fear of Missing Out), which could lead to a sharp sell-off, manipulated to eliminate late market entrants.

However, this potential dip could pave the way for a major rally, potentially propelling DOGE to new ATHs. Such cycles are common in highly volatile meme-driven markets, where emotional trading can lead to rapid price changes, analysts noted.

The current retail frenzy indicates robust interest in Dogecoin, setting it up for significant market moves in the near future.

Number of trades on all exchanges also hit a new record for DOGE

Dogecoin also set a new record in terms of the total number of trades across all exchanges, reaching an all-time high in November 2024.

This surge in trading activity reflects a growing interest in the meme cryptocurrency, surpassing previous peaks observed in early 2021 and mid-2023.

The spike in trades coincides with a period of heightened price movements, indicating an increase engagement. As the trading frequency soars, DOGE’s price also shows significant volatility.

This trend is particularly evident in November, where trade counts on both spot and futures markets escalated dramatically, indicating robust engagement from traders worldwide.

This landmark trading activity for Dogecoin suggests a renewed enthusiasm in the crypto community, potentially setting DOGE up for further attention and investment.

The cryptocurrency continues to attract a diverse audience, driven by its underlying community support and widespread media coverage, contributing to its volatile yet intriguing market performance.

DOGE price prediction nowWith retail investors FOMO on DOGE suggesting the possibility of another dip to take out the traders entering now, a rally could unfold leading to hitting of new ATHs.

DOGE on the four-hour timeframe showed significant price movements with corresponding trading volumes. Interestingly, the chart highlights two prominent rallies with anticipation of another.

The first rally shows an increase from around $0.125 to $0.175, indicating a gain of 40.42%.

Similarly, the second highlighted surge reaches up to $0.43, indicating another increase of 208.59% and its projected to surge another 208.58% blasting past $1.

These spikes coincide with the RSI (Relative Strength Index) dipping into the “oversold zone,” signaling potential buying opportunities that traders might have capitalized on.

Is your portfolio green? Check out the Dogecoin Profit CalculatorAfter each dip into the oversold area, substantial price increases follow, suggesting a pattern of strong buying pressure following significant sell-offs.

At press time, the RSI was around the oversold territory, hinting at another potential uptrend if past patterns hold true.