Dogecoin Alert: Here's Why A DOGE Rally Could Be Just Around The Corner!

• DOGE holds support at $0.14789, breaking out of the descending channel.
• On-chain metrics and rising open interest indicate strong investor interest, indicating potential gains ahead.

Dogecoin [DOGE] Buoyed by both crowd enthusiasm and “smart money” confidence, bullish sentiment is enjoying a wave. Recent price action has pushed DOGE out of a long-standing descending channel, pointing to renewed upside potential.

But will this breakout, along with current support at $0.14789, really set the stage for a broader crypto rally?

DOGE breaks out of the channel: key resistance levels to watch

At press time, Dogecoin was trading at $0.1436, showing a 3.99% increase in the last 24 hours. However, DOGE's breakout from a descending channel remains the key technical development, with the $0.14789 resistance level serving as an important threshold.

A hold above this level could signal a bullish reversal, paving the way for further gains. If momentum continues to build, the next resistance near $0.17 could act as a launchpad, potentially driving DOGE into higher price territory.

Source: TradingView

Technical indicators suggest potential momentum

Technical indicators further strengthen the case for a sustained rally. MACD (Moving Average Convergence Divergence) is currently showing a slight positive divergence, with the MACD line above the signal line. This setup indicates potential upside momentum.

Meanwhile, the Stochastic RSI, recently dipped below the 40 mark, indicating DOGE is moving into an oversold zone. While some short-term retracement may occur, these indicators indicate that underlying sentiment remains optimistic, setting the stage for potential gains.

Source: TradingView

On-chain metrics are increasingly attracting investor interest

The on-chain signal adds another layer to Dogecoin's bullish setup. Net network growth, by 0.10%, reflects a gradual increase in network participants. Furthermore, large transactions increased by 3.67%, indicating higher activity from “whales” or large holders.

Although “In the Money” shows a slight bearish signal at -0.44%, the density metric's 0.01% increase suggests continued interest from substantial investors.

Therefore, these metrics indicate positive network health and a growing base of larger holders, which may contribute to further price support.

Source: IntoTheBlock

A spike in open interest signaled traders' activity

Furthermore, open interest in Dogecoin increased by 15.69%, now totaling $988.75 million. This increase indicates a significant spike in speculative activity, possibly in response to the breakout.

Such high levels of open interest often indicate increased trader involvement, which can boost short-term momentum. However, higher open interest can lead to higher volatility, so investors should exercise caution.

Source: Coyonglas

Read Dogecoin [DOGE] Price Forecast: 2024-2025

Dogecoin's breakout from the descending channel, combined with strong on-chain data and growing open interest, suggests a promising setup for continued gains. If DOGE can maintain support above the critical $0.14789 level, a broader rally could be on the horizon.

While technical indicators support a bullish outlook, it is essential to monitor key support and resistance levels to assess the durability of this rally.