Why Are Traders Heading Back to Dogecoin? Is This a Fleeting Drift?

Dogecoin is again receiving attention, as the volume has soared by over 35% since the early trading hours. This has caused a marginal rise in the price, which has surged by nearly 5% above $0.16. Besides, the market sentiments have also flipped to bullish ever since the launch of the spot Ethereum ETF. Therefore, now the question arises of why traders have jumped in favour of the DOGE price rally.

Does the price initiate a breakout above the critical resistance or just trap the bulls at the local highs?

Ever since the beginning of the 2021 bear market, which kicked off following the SNL event where he termed DOGE as a ‘Hustle’, the traders have lost their interest in the token. Although the price received some bullish push, it remained a short-term rally. However, the trend appears to have changed in recent times as the volume has been surging since the beginning of March, which has raised the volatility of the token. 

Will the bulls hold the DOGE price above the gains? Will it hit $0.2 before the end of the month?

After the recent pullback from the yearly highs above $0.22, the DOGE price has been maintaining an ascending trend and could reach the edge of the consolidation soon. This has triggered a rebound from the average levels of the Gaussian channel, which is still under bearish influence. Besides, the RSI is maintaining a decent upswing, which may compel the prices to reach the upper resistance of the channel. 

The technicals and the chart patterns do not indicate the recent breakout will be short-lived, but the price is expected to hit new yearly highs above $0.25. However, the traders usually remain impatient and squeeze profits following minor jumps. Hence, if the bulls receive the required pressure in the form of volume, then the Dogecoin (DOGE) price may keep up the bullish trend, withstanding all the bearish pressure.

Therefore, a rise above $0.3 appears to be imminent in the first few weeks of H2, which may ensure a bullish close for the year 2024.