Dogecoin surges 10% on volume spike, targets $0.25

The cryptocurrency market has been bullish over the last few days and looks to end the week in a positive manner.

Bitcoin has rallied to a new all-time high of $118k while Ether is trading above $3k once again.

DOGE, the native coin of the Dogecoin ecosystem, is one of the best performers among the top 10 cryptocurrencies by market cap.

It added 10% to its value in the last 24 hours, suggesting a breakout that could result in higher prices in the short to medium term.

Higher volume triggers DOGE’s rally

DOGE is the second-best performer among the top 10, behind Cardano’s ADA.

Its rally is fueled by higher trading volume as investors troop into the cryptocurrency market.

Data obtained from CoinMarketCap revealed that Dogecoin has a $2.2 billion trading volume over the last 24 hours.

This is a massive 33% increase, suggesting that there are more buyers than sellers in the market.

The trading volume represents only 7.4% of Dogecoin’s total market cap, indicating that a higher volume/market cap ratio could push DOGE’s price higher.

Analysts are predicting that DOGE’s price could double from here in the coming weeks or months, with $0.20 serving as the springboard for this rally.

DOGE eyes $0.25 amid bullish sentiments

The DOGE/USD 4-hour chart is bullish and efficient, suggesting that the coin could rally higher after grabbing liquidity from the downside.

At press time, DOGE is trading at $0.1992 and looks set to break above $0.20 soon.

The Relative Strength Index (RSI) of 81 shows that buyers are firmly in control and DOGE is heading into the overbought territory.

The MACD lines are also within the positive zone, indicating a strong bullish bias.

If the broader crypto market continues its rally, DOGE could break above $0.20 and hit the major resistance level at $0.25 in the coming hours or days.

The $0.25 level is also a Valid Trading Range (VTR), and traders could take profit from there. 

In the event of an extended rally, DOGE could break out and hit the $0.34 resistance level for the first time since January 2025.

A rally towards $0.34 will establish $0.20 as a strong support and allow DOGE to target a new 2025 high.

However, after rallying by 16% this week, Dogecoin and the broader crypto market could undergo a slight correction before resuming the upward movement.

If the correction happens, DOGE could retest the major support level at $0.17528.

However, Dogecoin has to be extremely bearish to drop to the TLQ level at $0.16729. 

Overall, Dogecoin broke out with conviction, with the trading volume supporting the rally.

If sustained, DOGE could reclaim some of the gains it lost earlier this year.

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