- DOGE ended November up nearly 170%, riding the wave of Bitcoin’s volatility.
- If Dogecoin can continue to counter the bearish pressure, a similar pattern could unfold.
Dogecoin [DOGE] has recently entered the ‘mostly bullish’ category, with a gain of 2% in the last 24 hours, boosted by a significant 40% golf at new addresses.
This follows strong performance during the week, with DOGE hitting $0.48, its highest level this election cycle.
However, as the “Trump trade” cooled and weaker hands left, DOGE returned to $0.40, hitting a key resistance level.
SShould the price find a local low here, it could pave the way for a potential recovery that will see Bitcoin’s capital rotate [BTC] while the king coin takes a breather.
DOGE should take advantage of the volatility
Amid a post-election market turmoil, DOGE hasn’t been left out of the rally, rising more than 170% in November alone.
Despite this impressive rise, altcoins are in the spotlight speculation that an altcoin season may be coming.
Altcoin seasons typically occur when Bitcoin’s dominance wanes as investors rotate capital into high-cap altcoins in search of higher returns.
This often happens when BTC reaches price levels that are considered ‘high risk’, prompting traders to look for opportunities elsewhere.
With Bitcoin still hovering below the critical $100,000 threshold and entering the final month of the fourth quarter, investors are likely to reassess their strategies. This shift creates an excellent opportunity for tokens like Dogecoin to shine.
Source: TradingView
In the second week of November, DOGE made a remarkable move, gaining more than 20% against BTC and breaking the $0.00000400 level. This increase was supported by an RSI that rose above 90, indicating strong buying pressure.
However, a correction soon followed as traders shifted their focus back to Bitcoin. Within seven trading days, BTC rose above $99K and formed a local low around the $90K level.
Looking ahead, the path will likely depend on macroeconomic factors such as the period ahead unless Bitcoin bounces back from this low Fed meeting – that could trigger a bull rally above $100,000.
In the meantime, a period of consolidation seems more likely, potentially shifting the market’s focus to altcoins, allowing DOGE to capture a larger share of the attention.
However, this can only become a reality if DOGE maintains bullish momentum on key metrics to attract the attention of strategic investors.
Although the 40% increase in the number of new addresses is a positive sign, this in itself may not be enough.
A strong recovery depends on two important conditions
DOGE’s impressive rally in November was the result of significant accumulation in the spot market. On the day the value reached $0.40, traders withdrew more than 47 million DOGE tokens from the exchanges.
This build-up paved the way for a quick price spike, with DOGE closing at $0.48 in less than seven trading days.
Source: Coinglass
However, after Bitcoin hit an all-time high of $99,000 and saw a 5% decline, the Dogecoin rally also lost momentum.
As a result, DOGE fell 8% on the day, but the RSI remained stable, indicating that excessive selling pressure was not the cause of the correction – a strong bullish sign.
DOGE was trading at $0.4275 at the time of writing and has shown positive movement against other keywords statisticswith $0.40 possibly forming a local bottom.
This indicates intervention from both retail and institutional investors, indicating strong support at this level.
A recovery from current price levels could push DOGE towards $0.48 in the coming days. However, there are two key factors that could hold this rally back.
Read Dogecoins [DOGE] Price forecast 2024–2025
First, if investors shift their focus back to Bitcoin after the upcoming Fed meeting, where the market expects a 25 basis point rate cut, DOGE could only see short-term gains as capital rotates back into BTC.
Secondly, if the market breaks below the $0.40 support level and key metrics turn bearish, DOGE could face further downside pressure, which could indicate a shift in market sentiment.