Dogecoin (DOGE) Price Prediction: Can the Meme Coin Extend Its Recent Rally?

Dogecoin (DOGE) has experienced an impressive surge in recent days, hitting a near two-week high of $0.20585 on Wednesday, March 26.

Dogecoin (DOGE) has experienced an impressive surge in recent days, hitting a near two-week high of $0.20585 on Wednesday, March 26. Over the past seven days, the largest meme coin in the crypto market has rallied nearly 10%, outperforming several altcoins that continue to struggle with recovery amid ongoing macroeconomic developments in the U.S.

While several altcoins are still recovering from the recent downturn, Dogecoin has managed to outperform with a strong rally, sparking interest among traders and investors. As Dogecoin’s price approaches a key imbalance zone, traders will be keen to observe whether the meme coin can break through this resistance and continue its bullish run.

This analysis will delve into Dogecoin’s recent performance, examining technical indicators, on-chain metrics, and future price predictions to provide a comprehensive outlook on the meme coin’s performance.

Dogecoin Price Surges Towards Crucial Imbalance Zone

Dogecoin’s recent rally has brought it to key technical levels that traders will be closely monitoring. The meme coin has shown resilience in an otherwise uncertain crypto market, likely benefiting from renewed interest and increasing network activity. This has led to a significant price surge, sparking bullish expectations that could see DOGE extend its gains by an additional 11% in the near term.

Currently, DOGE is testing resistance at the lower boundary of an imbalance zone, situated between $0.24040 and $0.21465. This zone is a significant technical level that traders will be watching closely, as a break above could open the door for a substantial rally in price.

The next key resistance lies at the upper boundary of this zone at $0.24040, which represents an increase of nearly 24% from the current price levels at the time of writing.

Conversely, support is found at $0.1900, a crucial level that could prevent a downturn should the bullish momentum weaken. If DOGE fails to hold above this support, it could revisit lower levels, dampening investor sentiment and sparking selling pressure.

At the time of writing, DOGE is trading at $0.20585, showcasing a 9.80% increase over the past seven days, highlighting its strong performance compared to other altcoins.

Technical Indicators Point to Continued Bullish Momentum

A look at technical indicators provides further insight into Dogecoin’s price trends and momentum.

Relative Strength Index (RSI)

The RSI for Dogecoin currently stands at 52, placing it above the neutral level of 50. This suggests that DOGE still has room for an upward move before it reaches overbought territory, where it may face selling pressure. A further increase in RSI would indicate a continued bullish trend, while a decline could signal a loss of momentum.

Moving Average Convergence Divergence (MACD)

The MACD indicator is also flashing bullish signals. The presence of green histogram bars above the neutral line indicates underlying positive momentum in Dogecoin’s price trend. As long as the MACD remains above the signal line, it is likely that DOGE’s uptrend will continue, while a drop below the signal line could indicate a shift in momentum.

On-Chain Metrics Indicate Health and Growth in Dogecoin Network

To gain a deeper understanding of Dogecoin’s rally and its sustainability, examining on-chain metrics can provide valuable insights into the network’s health and investor behavior.

Rising Number of Holders

One notable trend in Dogecoin’s network is the increasing number of holders. This suggests that more investors are accumulating DOGE, which is a positive sign for long-term price stability. In contrast, if the number of holders decreases, it could indicate that investors are selling and distributing DOGE, which may put downward pressure on price.

If this trend continues in the coming weeks, it could reinforce Dogecoin’s relevance among traders and investors, leading to sustained interest in the meme coin.

Realized Profit/Loss Metric Shows Small-Scale Profit Securing

The realized profit/loss metric for Dogecoin shows that holders are securing profits on a small scale. This is in contrast to large-scale profit-taking, which can increase selling pressure and lead to rapid price declines.

The current trend suggests that DOGE is experiencing organic growth with minimal distribution, which is a healthy sign for the meme coin’s long-term prospects.

Active Address Count Remains Stable

Since mid-March, Dogecoin’s active address count has remained relatively stable. This indicates that there is consistent activity on the network, with users engaging in transactions and interacting with the blockchain.

A steady active address count is generally a bullish sign, reflecting continued interest and engagement within the Dogecoin ecosystem.

What Could Spark Further Price Gains in Coming Weeks?

Several factors could contribute to Dogecoin’s continued rally in the coming weeks, impacting traders’