Dogecoin alert: Here’s why a DOGE rally could be just around the corner!

• DOGE breaks out of descending channel, holding support at $0.14789.
• On-chain metrics and surging open interest indicate strong investor interest, signaling potential gains ahead.

Dogecoin [DOGE] is enjoying a surge of bullish sentiment, fueled by both crowd enthusiasm and “smart money” confidence. The recent price action pushed DOGE out of a long-standing descending channel, hinting at renewed upward potential.

But will this breakout, alongside its current support at $0.14789, truly 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 over the past 24 hours. However, DOGE’s breakout from a descending channel remains the key technical development, with the $0.14789 resistance level serving as a critical threshold. 

Holding 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. The MACD (Moving Average Convergence Divergence) currently shows slight positive divergence, with the MACD line positioned above the signal line. This setup indicates possible upward momentum. 

Meanwhile, the Stochastic RSI, recently dropping below the 40 mark, hints at DOGE moving into an oversold region. While some short-term retracement might occur, these indicators signal that the underlying sentiment remains optimistic, setting the stage for potential gains.

Source: TradingView

On-chain metrics reveal growing investor interest

On-chain signals add another layer to Dogecoin’s bullish setup. Net network growth, up by 0.10%, reflects a gradual increase in network participants. Furthermore, large transactions have risen by 3.67%, signaling heightened activity from “whales,” or large holders. 

Although “In the Money” shows a slight bearish signal at -0.44%, the concentration metric’s increase of 0.01% suggests consistent interest from substantial investors. 

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

Source: IntoTheBlock

Open interest spike signals heightened trader activity

Moreover, open interest in Dogecoin has surged by 15.69%, now totaling $988.75 million. This increase indicates a significant spike in speculative activity, likely in response to the breakout. 

Such a high level of open interest often points to increased trader engagement, which can fuel short-term momentum. However, elevated open interest can also lead to higher volatility, so investors should exercise caution.

Source: Coinglass

Read Dogecoin’s [DOGE] Price Prediction: 2024-2025

Dogecoin’s breakout from the descending channel, coupled with robust on-chain data and surging open interest, suggests a promising setup for continued gains. If DOGE can maintain support above the critical $0.14789 level, a broader rally may be on the horizon. 

While technical indicators support a bullish outlook, monitoring key support and resistance levels remains essential to assess this rally’s durability.