Three key conditions that could lead to a double-digit surge in Dogecoin

Dogecoin saw a surge of nearly 10% this week, remaining strong despite the ongoing tariff disputes initiated by U.S. President Donald Trump and the surrounding macroeconomic challenges. While most altcoins faced adverse effects from Trump’s announcements, DOGE managed to recover, surpassing the $0.2058 mark for the first time in almost two weeks.

Dogecoin’s Double-Digit Rally: What Lies Ahead for DOGE Price?

On March 26, Dogecoin (DOGE) reached a near two-week high of $0.20585. Over the last week, DOGE increased by nearly 10%, even as other altcoins struggled to rebound from the ongoing economic shifts in the U.S.

The reigning meme coin in the cryptocurrency market may further its ascent, potentially climbing by an additional 11% as it approaches resistance within the imbalance zone ranging from $0.24040 to $0.21465.

The upper limit of this zone, at $0.24040, stands as the next significant resistance for DOGE, representing nearly a 24% increase from the current price.

Both key momentum indicators, the RSI and MACD, endorse a bullish outlook for Dogecoin. The RSI sits at 52, indicating a position above the neutral threshold. The MACD displays green histogram bars above the neutral line, signifying positive momentum in the Dogecoin price trend.

Analyzing Dogecoin’s On-Chain Trends

The on-chain examination of Dogecoin reveals an increasing number of DOGE holders. Should this trend continue or maintain stability in the upcoming week, the meme coin is likely to sustain its popularity among traders.

The network’s realized profit/loss metric indicates that DOGE holders are realizing profits on a small scale. In typical market conditions, large-scale profit-taking can heighten selling pressures, adversely affecting the price.

This metric backs a bullish narrative for DOGE in the upcoming week. Additionally, Dogecoin’s active address count has remained stable since mid-March, highlighting the cryptocurrency’s enduring strength.

Derivatives Analysis and Price Outlook for DOGE

A review of Dogecoin derivatives across exchanges indicates that open interest is rebounding from its low of March 12, standing at $1.98 billion as DOGE trades at $0.19. Data from Coinglass shows a consistent upward trend in open interest, as illustrated in the chart below.

Data on total liquidations highlights that $4.29 million in long positions were liquidated on March 27. Buyers looking to re-enter must monitor liquidation data and prevailing prices closely before adding to their derivative positions.

The long/short ratio on prominent exchanges like Binance and OKX surpasses 1, suggesting that derivatives traders are optimistic about an increase in DOGE price.

When combining technical analysis with derivatives data, it appears that Dogecoin price could test resistance levels at $0.21465 in the coming week if spot prices align with the actions of derivatives traders.

Projected Outlook for DOGE

Dogecoin wallets holding between 1 million and 10 million DOGE tokens have shown consistent accumulation between March 10 and March 27. Conversely, wallets holding between 10 million and 100 million DOGE, as well as those with 100 million to 1 billion DOGE, have remained relatively stable during this period.

Santiment’s data reveals that traders with holdings between 1 million and 10 million tokens are rapidly amassing more, even as the token’s price increases. This trend supports demand for DOGE and further underscores a bullish sentiment for the meme coin.

Dogecoin ETF Developments and Catalysts for DOGE

DOGE holders are keenly observing the progress of Bitwise’s Dogecoin ETF application with the SEC. This ETF filing marks an attempt to establish the meme coin as a legitimate investment class for institutional buyers, especially as DOGE maintains a steady position amidst declining altcoins.

While Bitcoin’s flash crashes have momentarily affected Dogecoin, the meme token has consistently rebounded, indicating that sustained gains could mark the end of DOGE’s prolonged downward trend.

Additional catalysts influencing Dogecoin include positive developments in cryptocurrency regulation, the advancement of the stablecoin legislation in Congress, and increased demand for DOGE among whale and large wallet investors.