Dogecoin Price Prediction: Key Support Holds and Favors Push to $0.45

Trading volumes in the past 24 hours have jumped by 15.4% for Dogecoin (DOGE) as the token booked a 5% gain.

The market has been recovering from its latest pullback, and DOGE bounced strongly off a key support area, a move that favors a bullish Dogecoin price prediction.

The launch of the REX-Osprey Dogecoin ETF (DOJE) can be considered a landmark moment for meme coins as a whole, as this entire category went from mere internet jokes to taking over Wall Street by storm.

REX-Osprey Dogecoin ETF (DOJE) Data – Source: REX-Osprey Official Website

The vehicle has already attracted $20 million in assets just a couple of weeks after it hit the trading floor.

Although that’s nothing compared to the nearly $400 million the recently-launched Solana ETF has brought in, buying interest could progressively grows as the public becomes more aware of the potential of this entire segment.

In the past 7 days, DOGE has outperformed its closest contenders, Shiba Inu (SHIB) and Pepe (PEPE), with an 11.4% gain. None of these two has been tapped by asset management firms to get their own ETF.

Hence, Dogecoin’s outlook is much more promising compared to others, except perhaps for Pudgy Penguins (PENGU), whose ETF listing could soon be approved as well.

Market Sentiment Has Picked Up and Altcoin Season Keeps Going

Macroeconomic conditions favor a bullish outlook for meme coins as a whole, as the Federal Reserve is expected to cut rates for a second time this year.

Lower rates push market participants to more exotic corners of the financial, world like cryptocurrencies, as they need to chase higher yields wherever they are.

Dogecoin has no utility and offers no opportunities to earn passive income as its blockchain operates through a proof-of-work (PoW) mechanism. Nonetheless, the gains that this token has experienced in the past few years are probably good enough to sway some institutional players along the way.

Altcoin season has officially kicked off, with both Ethereum (ETH) and BNB Coin (BNB) already making new all-time highs.

If Dogecoin (DOGE), the 8th largest cryptocurrency by market cap, starts to play catch-up with these two, the token could deliver some attractive gains in the near term.

Market sentiment has improved as a result of the latest bounce. The Fear and Greed Index jumped from a 30-day low of 34 (Fear) to 52 now, meaning that investors are now more inclined to take some risks.

DOGE Could Deliver an 80% Gain If It Breaks Through This Resistance

Tomorrow’s employment data could further boost crypto valuations if non-farm payrolls deliver no surprises, as it would confirm analysts’ view of a second rate cut in October.

DOGE/USD Daily Chart (Coinbase) – Source: TradingView

Meanwhile, the daily chart for DOGE shows an encouraging bounce off a key trend line support that is in confluence with the 200-day exponential moving average (EMA).

This increases the relevance of the $0.22 area from a technical standpoint and makes it the key support to watch in case of a pullback.

For now, the price is nearing a major supply area at $0.27. DOGE has retreated three times already after tagging this price zone.

Hence, if bulls manage to break through the selling and push DOGE above $0.30, we could witness a strong rally that pushes the top meme coin to at least $0.45 in the near term. This translates into an 80% upside potential if bullish momentum picks up its pace.

After briefly dropping below the mid-line, the Relative Strength Index (RSI) has now moved above the 14-day moving average, which is often considered a buy signal. DOGE is clearly on the move, and it could soon take off based on these technical readings.