Dogecoin finally rose above the key resistance level of $0.48, briefly reaching $0.484 before retreating slightly. This marks a significant development for the meme coin, which has been struggling to break this level for weeks. The move has sparked renewed optimism among traders and investors who see potential for further growth.

Key data from blockchain analytics firm Santiment highlights that Dogecoin, along with other meme coins, is experiencing mini-explosions this weekend. This trend suggests growing momentum in the meme coin sector, often seen as a precursor to broader market gains. The data shows growing transaction volumes and increased on-chain activity, indicating continued interest in Dogecoin.

If this momentum continues, Dogecoin could be on the verge of extending its recent gains, with many market participants eyeing the psychological level of $0.50 as their next target. A successful break above $0.50 could pave the way to even higher levels, further fueling the ongoing rally. However, failure to maintain the upward trajectory may result in a period of consolidation.

Dogecoin sets the stage for recent highs

Dogecoin is positioning for higher prices as it continues its upward trajectory, but the recent breakout has lacked the momentum that many expected. Despite breaching critical levels, Dogecoin failed to sustain its price above its previous high, signaling the need for stronger buying pressure to maintain growth.

Blockchain analytics platform owned by Santiment shed lightweight on recent activityrevealing that meme coins like Dogecoin, Pepe, Dogewithhat, and Bonk are experiencing mini blowouts this weekend.

According to their data, larger wallets, often referred to as “whales”, have played a key role in increasing the market capitalization of these coins. This trend is expected to continue until FOMO (fear of missing out) takes hold in retail, which could result in higher prices in the compact term.

However, the dynamics of meme coin markets suggest caution. Santiment’s analysis shows that when the social dominance of these tokens increases significantly, it often signals a market peak. Whales typically benefit from increased retail enthusiasm by selling off their holdings at inflated prices. This pattern often results in a piercing pullback as prices correct after a sell-off.

Santiment also shared a comparison chart showing social dominance on these meme coins, highlighting past instances where peaks in attention preceded dips. For Dogecoin, maintaining its current momentum while avoiding overbought conditions will be crucial to maintaining growth.

Price testing Fresh delivery

Dogecoin (DOGE) is currently trading at $0.46 after failing to decisively break above the $0.48 level. The price remains in a consolidation phase, trying to gain enough momentum to break the psychological mark of $0.50. Despite this, the overall market sentiment remains hopeful, which provides a favorable backdrop for potential price increases.

The current environment suggests that Dogecoin will likely continue to trade below $0.50 for the foreseeable future. However, if the bulls manage to muster the strength to break above this critical level and hold it for a few days, a massive breakout could be on the horizon. A break and hold above $0.50 would likely signal renewed buying interest, setting the stage for a powerful rally.

The bullish market conditions driving other major cryptocurrencies could also work in Dogecoin’s favor, provided overall sentiment continues to improve. Still, investors should watch for clear confirmation of a breakout before expecting significant price moves.

Failure to break and sustain above $0.50 could result in prolonged consolidation, delaying any significant upside momentum. For now, all eyes are on whether DOGE can capitalize on the broader market’s optimism and take decisive steps towards higher price targets.

Featured image from Dall-E, chart from TradingView