Dogecoin is currently at a key demand level after rising 4% from local lows, sparking grave speculation in the market. The meme coin has attracted the attention of analysts and traders, with mixed opinions on its next move. Some believe that Dogecoin is gearing up for a rally, while others suggest further declines could be on the way.

Key data from IntoTheBlock highlights the importance of short-term investors in providing liquidity to meme coins like DOGE. This group of traders remains a significant source of activity, often contributing to rapid price fluctuations.

Dogecoin remains well above the critical $0.10 level, which provides key psychological support for the asset. If the price maintains its momentum, the next upside target will be around $0.11, which could create more excitement and buying interest in the market.

As speculation continues, all eyes are on whether Dogecoin will be able to maintain its recent strength or whether it will face another wave of selling pressure. The coming days will determine the direction of the meme coin’s development in the coming weeks.

Dogecoin price driven by speculation

Dogecoin is facing intense speculation as investors and analysts express differing views on its future price action. After several weeks of ups and downs, the meme coin has been subjected to extreme volatility, reflecting the erratic behavior of the overall market. The uncertainty surrounding Dogecoin has led to heated debates on whether its price will rise or continue to fall.

Key data from IntoTheBlock reveals the key role of short-term traders in driving meme coins, especially Dogecoin. These tokens thrive on hype and speculative trading, and DOGE is the leader with the most dynamic short-term investors.

Dogecoin has seen around 113,000 short-term investor visits over the past week, highlighting its dominant position in the meme coin market.

Interestingly, DEGEN, a much smaller token, has also attracted around 23,000 short-term traders – as has Shiba Inu, even though DEGEN’s market capitalization is only 10% of Shiba Inu’s size. This highlights the speculative frenzy in the meme coin ecosystem, where even lesser-known assets generate significant trading activity. In comparison, most mid-sized meme coins only show around 4,000 dynamic short-term investors, illustrating Dogecoin’s continued strength.

Despite the speculative nature of these assets, Dogecoin’s ability to attract the most dynamic traders signals resilience and points to the potential for future growth, even in the face of broader market uncertainty.

DOGE is holding above $0.10

Dogecoin (DOGE) is trading at $0.108, testing the 4-hour moving average 200 (MA) as resistance. Bulls looking to maintain momentum need to regain this key metric to drive prices higher. The 4-hour 200 exponential moving average (EMA) is also at $0.1088, just under 1% above the current price. This creates a key resistance zone for DOGE.

A clear break above the 200 MA and 200 EMA and the psychological level of $0.11 would likely trigger a rally, pushing the price higher as the bullish momentum continues. Failure to recover these metrics, however, could result in a more significant adjustment. If this happens, DOGE could face a decline to $0.088, which represents a key lower level of demand and signals further declines in the coming days.

As Dogecoin continues to test these levels, investors are keeping a close eye on a decisive move that could indicate the next major trend, with the potential for an upside or further decline depending on whether the bulls manage to reclaim these moving averages and break above $0.11.

Featured image from Dall-E, chart from TradingView