DOGE Sprints to Two-Year High. Is the Rally Sustainable?

Dogecoin’s latest rally and growing holder base resembles the monumental 2021 run, but there’s a catch.

by Tadas Klimasevskis. Fact checked by: Ciaran Lawler, Editor: Stefan Trapp

Published: March 1, 2024 │ 7:00 PM GMT

Dogs playing around with hovering Doge's in the green digital space. — *Created by Kornelija Poderskytė from DailyCoin*

Dogecoin’s wallet addresses scorch past the 6M mark, claiming a new all-time high.
As DOGE’s on-chain fees spiked by 739% in 2024, traders draw similarities to 2021.
Essential on-chain data unfolds mixed signals, as bears haven’t retreated yet.

Dogecoin (DOGE) embarked on the most tremendous bull run in the last two years, racing past $0.13 for the first time since Elon Musk acquired Twitter for $44 billion in late October of 2022. Riding on Bitcoin’s hype due to its ultra-high price correlation with BTC, the top dog coin also has its reasons for the massive spike.

Judging from the fundamental on-chain metrics, Dogecoin’s new addresses have spiked by 21.3% in the last seven days, which contributed towards a 164% increase in collected fees on the largest Proof of Work (PoW) blockchain aside from Bitcoin (BTC). As public interest in DOGE has rebounded after a relatively calm 2023, transaction fees have increased by 739% since the beginning of 2024, according to IntoTheBlock.

Dogecoin's garnered transaction fees, according to on-chain data. — *Dogecoin’s garnered transaction fees, according to on-chain data by IntoTheBlock*

This is further confirmed by the milestone of 6 million crypto addresses, uncharted territory for DOGE, as the canine coin had 3.44 million addresses when it hit its $0.73 all-time high on May 8, 2024.

Is DOGE Ready to Repeat Its Landmark 2021 Run?

Several experienced cryptocurrency traders have drawn similarities between DOGE’s price action in 2021 and 2024, as portrayed in a Crypto Daily Trade Signals graph. Veteran crypto analyst Ali Martinez insisted that Dogecoin is following previous patterns and could be inclined to a “parabolic breakout around April” if the price movement continues to resemble the 2021 bull run.

Look at there #Dogecoin Charts 2021/2024 !! What do you see ? They are very much the same !! #Doge will explode soon pic.twitter.com/r2oTpn7fZE
— Crypto Daily Trade Signals (@cryptodailyTS) March 1, 2024

However, the technical implications suggest that the crypto bulls haven’t fully conquered Dogecoin. To illustrate, the Relative Strength Index (RSI) on the daily charts implies that DOGE is at an inflection point due to the extremely overbought position at 96 RSI. Meanwhile, large transactions on the network dropped by 9% despite some hefty whales topping up their bags.

Dogecoin is currently exchanging hands at $0.125 with a 3.6% deficit due to the incoming market correction over the last 24 hours. Dogecoin’s bullish outbreak has raised its price by 58.2% in the last 30 days. Still, the way up heavily depends on Dogecoin’s speculated adoption cases, like the integration into X’s peer-to-peer transaction system.

On the Flipside

While the technical DOGE price movement patterns have similarities with the 2021 bull run to $0.73, it’s worth noting that the social media attention and public mass appeal sparked by Elon Musk’s public introduction to Dogecoin played a key role in the 2021 rally.