Trading Volume Surges 60%... Can Dogecoin Reach $0.114?

▲ Dogecoin (DOGE) ©

Dogecoin, riding the wave of Bitcoin breaking through $80,000, is strengthening its short-term upward momentum by piercing key resistance levels.

According to cryptocurrency market data aggregator CoinMarketCap on May 4 (local time), Dogecoin (DOGE) recorded a 3.96% increase over 24 hours to $0.112, showing a stronger rise compared to Bitcoin, which increased by approximately 2.3% during the same period.

The core of this surge is a technical breakthrough. Dogecoin broke above the $0.109 resistance level with strong trading volume, which surged by 60% to $1.75 billion. Analysis suggests that concentrated buying pressure has entered in the short term, forming a structure that has broken out of its previous range.

The overall market uptrend also boosted Dogecoin. As Bitcoin surpassed $80,000, inflows into spot ETFs and short squeezes (buying pressure resulting from the liquidation or covering of short positions) occurred, and this effect spread to high-volatility altcoins. The altcoin season index also rose by 10% over 24 hours, indicating a trend of funds moving into memecoins.

However, the rise is strongly dependent on market momentum rather than individual positive news. Dogecoin is a typical high-beta asset that amplifies Bitcoin's movements, and its price structure allows for significant movements even without separate fundamental events.

In the short term, maintaining the $0.109 support level is a critical turning point. If this level is held, a retest of $0.114 is possible, but if it breaks, a retracement to around $0.105 is expected. The Relative Strength Index (RSI) is at 72.43, entering the overbought zone, which also suggests the possibility of a short-term correction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*