Dogecoin (DOGE) is once again capturing the spotlight as recent data shows a significant uptick in trading volume and strong momentum indicators. With heightened market activity and a solid uptrend, traders are eyeing critical resistance levels that could pave the way for further gains. But will DOGE hit $0.17 in October, or will it face a pullback?
DOGE Trading Volume Surges To $2.2 Billion
In recent days, DOGE’s daily trading volume spiked to $2.27 billion, marking the highest level since August 5. Although it has now settled at $2.12 billion, this surge reflects growing interest and investor engagement. Higher volumes often indicate robust market conviction, suggesting the recent price rally may have solid support.
Between October 10 and October 18, DOGE’s price rose from $0.10 to $0.134, signaling a 34% increase. With the volume increase accompanying the price rally, traders are interpreting this trend as a sign of healthy upward momentum, with DOGE showing potential for further gains.
Momentum Indicators Point to Strengthening Trend
One of the most reliable indicators of a trend’s strength, the Average Directional Index (ADX), currently stands at 34.12, rising from 13 just four days ago. An ADX value above 25 indicates a well-defined trend, and DOGE’s recent jump suggests growing confidence in the current uptrend.
This spike in the ADX shows that investor sentiment has shifted bullishly, supporting the possibility of more upward price action. For comparison, DOGE’s ADX soared to nearly 45 in late September when it rallied by 30%. The current reading leaves room for further growth, reinforcing the possibility of new highs.
DOGE’s EMA Setup Signals Bullish Momentum
Another bullish signal comes from DOGE’s Exponential Moving Averages (EMAs). Short-term EMAs are positioned above long-term EMAs, with a considerable gap between them, confirming upward momentum. When short-term EMAs maintain dominance, it typically signals that buyers have control and the trend is likely to continue.
If the bullish momentum persists, DOGE could challenge the $0.14 resistance level and potentially push toward $0.175—a 30% increase from current levels. This would mark DOGE’s highest price since May, reinforcing the notion that the uptrend has staying power.
While the indicators paint a bullish picture, traders must also be prepared for potential reversals. If DOGE’s momentum weakens, the price could retest key support levels at $0.12 or even dip to $0.098, representing a 26% correction. A narrowing gap between the EMAs would signal declining momentum, raising the risk of a bearish shift.
Also Read: Shiba Inu (SHIB) Lags Behind As Trading Volume Hits $771M, Trails Dogecoin And Meme Coin Rivals
With a surge in trading volume and a strong ADX reading, DOGE appears poised for further gains. If the current momentum holds, testing the $0.175 resistance level could become a reality, offering a promising outlook for October. However, a reversal could send DOGE back to crucial support zones, making it essential to monitor market trends closely.
Whether DOGE powers through to new highs or faces temporary setbacks, the coming days will be pivotal for the meme coin’s trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
