According to a report from Coinpedia, the meme coin’s resilience amid broader market declines earlier this week has sparked optimism among traders and investors, who see this as an opportunity for significant upside momentum.

Traders Display Strong Bullish Sentiment

Dogecoin’s ability to stay above the $0.30 mark is largely attributed to robust bullish sentiment among traders. On-chain analytics platform Coinglass revealed a Binance DOGE/USDT long-to-short ratio of 4.22, meaning long positions far outnumber short ones. Notably, 80.83% of top Binance traders have positioned themselves on the long side, while only 17.17% remain bearish.

Dogecoin (DOGE) could plot a bullish breakout above $0.50 in early 2025. Source: InvestingScope/TradingView

This confidence in DOGE’s potential has been further underscored by a sharp 90% increase in trading volume over the past 24 hours.

Long-Term Holders Signal Confidence

Long-term holders are also continuing to view DOGE optimistically, taking the recent dip in price as a chance to buy the cryptocurrency. Data from spot inflow/outflow metrics indicates that exchanges have recorded outflows above $45.05 million worth of DOGE. The implication of such reduced exchange reserves is the likelihood of weakened selling pressure and thus an open way to higher prices.

DOGE Spot Inflow/Outflow. Source: CoinGlass

Apart from the fast-growing mainstream utilization of Dogecoin, the full-time development efforts spearheaded by the Dogecoin Foundation have laced it with the required appeal. Recent partnerships and use cases, such as its adoption as a payment method by select merchants, have strengthened its position in the market, further boosting investor confidence.

Dogecoin’s Position Amid Market Declines

Currently trading around $0.36, Dogecoin has rebounded well after a broader cryptocurrency market downturn reversed to the upside. Major assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have also experienced significant gains over the last 24 hours, highlighting the volatility within the market.

Dogecoin (DOGE) price chart. Source: Brave New Coin

However, Dogecoin’s ability to hold its ground is notable and positions it as a potential standout as market sentiment turns favorable. Historical patterns and strong support from both traders and long-term holders suggest that DOGE could capitalize on its current momentum to achieve a significant price rally.

Optimism for a 50% Rally

With the $0.30 level serving as a pivotal threshold, analysts remain optimistic about Dogecoin’s prospects. If the asset sustains this support, it could potentially rally to $0.40, marking a 25% gain. The strong participation of traders and reduced exchange reserves bolster this outlook, even as the broader market navigates challenges.

As Dogecoin continues to draw attention, its performance will likely serve as a bellwether for sentiment in the meme coin segment of the cryptocurrency market. The meme coin’s ability to attract both retail and institutional interest amidst fluctuating market conditions emphasizes its resilience and growth potential, making it a key asset to watch in the coming weeks. With Trump about to lead a pro-crypto administration with Elon Musk, the stage is set for the Dogecoin price to soar in 2025.