Dogecoin (DOGE) Price Jumps 3.94% as Trading Volume Explodes to 4.42 Billion Coins

The cryptocurrency market has seen a lot of action in recent days, with many investors closely monitoring the upcoming decisions of the U.S. Federal Reserve.

The cryptocurrency market has seen a flurry of activity in recent days, with many investors keeping a close eye on the upcoming decisions of the U.S. Federal Reserve. While some assets have experienced minimal gains, Dogecoin (CRYPTO: DOGE) has managed to steal the spotlight with its recent price action and trading volume.

After seeing a dramatic increase in its 24-hour trading volume, Dogecoin has come into the attention of traders who are keen to understand what might come next for the coin’s price.

On Wednesday, Dogecoin rose 3.94% in just 24 hours, bringing its price up to $0.1727. This recovery came after a brief period of decline earlier in the week when Dogecoin dipped to $0.164. The move back into positive territory has brought a renewed focus on the coin, but the question on many investors’ minds is: What’s next for Dogecoin?

Dogecoin Trading Volume Explodes: 4.42 Billion DOGE in Just Hours

One of the most significant developments for Dogecoin recently is the surge in its trading volume, which reached 4.42 billion DOGE (about $766 million). This represents a 15% increase in the past 24 hours alone, highlighting a boost in investor activity. With this surge, Dogecoin has reignited discussions in the crypto community about its potential for future price movements.

While it remains to be seen whether Dogecoin can sustain its momentum, the increase in trading volume suggests that there is a growing interest in the coin. For many traders, this surge could be a sign of a broader rally or at least an opportunity for short-term gains.

What Led To Dogecoin's Price Rebound?

On May 6, Dogecoin experienced a notable drop, hitting lows of $0.164 after three consecutive days of losses. These declines had investors questioning the strength of Dogecoin’s bullish trend, especially after its recent highs earlier in the year.

However, the price rebound that followed was swift and impressive, as Dogecoin managed to push back above a key technical level — the 50-day simple moving average (SMA) — which is considered a crucial support level by many technical analysts.

This recovery suggests that buyers are stepping in to support Dogecoin’s price at this level, preventing further decreases.

Yet, while Dogecoin has managed to bounce back above this moving average, it has yet to initiate a significant rally, and there are still doubts about its ability to maintain upward momentum in the coming weeks.

What Does Technical Analysis Say About Dogecoin's Future?

According to technical analysis, Dogecoin’s Relative Strength Index (RSI) is currently close to the midpoint, which indicates that the coin may continue trading within its current range of $0.14 to $0.21 for the time being. This range represents a consolidation period, where the price is neither making substantial gains nor experiencing deep declines.

If the price manages to move above the 50-day SMA, bullish traders might aim to push Dogecoin towards the $0.21 level. If Dogecoin can surpass this resistance point, there’s potential for the coin to rally further, possibly reaching the $0.2644 mark, which aligns with the 200-day SMA.

On the other hand, if the price drops below the 50-day SMA again, sellers might take control, pushing the price towards stronger support at $0.14. Considering the current market conditions, Dogecoin’s short-term price action is likely to remain volatile, with traders keeping a close eye out for any signs of a breakout in either direction.

Dogecoin's Long-Term Outlook: Can It Keep Up With Bitcoin and Ethereum?

While the short-term movements of Dogecoin are of great interest to traders and investors, many are also considering its long-term potential. Dogecoin has been gaining attention as an alternative to Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), especially due to its minimal transaction fees and faster block times.

While it’s unlikely that Dogecoin will ever replace Bitcoin or Ethereum as the dominant cryptocurrency, it does offer certain advantages for users and traders seeking speed and affordability.

Moreover, Dogecoin has seen increased use cases in recent years, such as sponsorships, charitable donations, and even mainstream endorsements. Elon Musk, in particular, has been one of the most vocal supporters of the coin, which has helped maintain its popularity despite its volatile nature.

As of now, it seems that the future of Dogecoin remains uncertain, with many investors awaiting further signs of stability and growth. While the coin has experienced periods of explosive growth, it has also seen significant setbacks.

Conclusion: What's Next For Dogecoin?

At the time of writing, Dogecoin's price is in a recovery phase, having bounced back from recent lows. Its impressive trading volume and ability to stay above key technical levels indicate that the coin still has potential for future price