Dogecoin’s breakout sparks altseason frenzy - Should traders buy in?

DOGE spikes as 75% of Binance traders go long, but long-term holders start exiting.
Breakout could signal altseason revival, though overheated RSI hints at possible short-term correction.

Dogecoin [DOGE] is back in the spotlight. The memecoin surged this week, fueling speculation that an altseason could be on the horizon.

Bullish sentiment is clear as 75% of Binance Futures accounts are long on DOGE. However, behind the excitement, long-term holders (LTHs) are selling at their highest rate in two years.

This raises a crucial question: Is this rally based on true conviction, or just another meme-driven surge?

Margin frenzy, LTH exits and a loud crowd

Speculators are doubling down on Dogecoin: analyst Ali Martinez recently reported that 75% of Binance Futures accounts are long, with the long/short ratio surging to 3.0.

While excitement grows, long-term holders are quietly selling. Santiment’s age-consumed metric has hit its highest level since June 2023, signaling a surge of older DOGE moving—typically a bearish sign.

Meanwhile, Social Volume has skyrocketed, reflecting increased chatter and hype surrounding DOGE’s rally.

It’s that mix of euphoria and risk, which has fueled many an altcoin peak… before a steep correction. Traders may be optimistic, but the smart money appears to be stepping away.

DOGE breakout signals brewing altseason

Historically, Dogecoin has been a reliable early indicator of altseason – and the latest breakout from its multi-month downtrend has revived that narrative.

As shown in Ash Crypto’s chart, DOGE’s price is mimicking its 2024 surge, breaking resistance within a rising wedge while the TOTAL2 index shows a similar setup.

Both charts now flash bullish reversals. If DOGE’s rally sustains, it could ignite broader altcoin momentum, as risk appetite spills into mid- and low-cap assets.

DOGE price outlook

DOGE was trading at $0.2482 after a 7% daily gain at press time, maintaining strong bullish momentum. The RSI sat at 73.5, indicating overbought conditions that could trigger short-term profit-taking.

However, the OBV remained elevated at 47.94B, showing sustained buying interest. Price action suggests a possible push toward $0.30 if momentum persists.

Yet, with the RSI overheated, there could be potential consolidation or minor pullbacks. As long as DOGE holds above $0.23, the bullish structure remains intact, with social buzz and volume likely to dictate the next major move.