Dogecoin [DOGE] has stirred waves in the cryptos market, with its price recently soaring 25% to reach a new high for 2024.

After a brief consolidation phase, the memecoin seems to be gearing up for its next big move, with market participants predicting it could rise to $0.82 - a 90% increase from its current value.

This significant breakout has reignited interest among investors and traders, raising questions about the sustainability of the uptrend and whether dogecoin can maintain its upward momentum.

Dogecoin: Is a rebound underway?

Recently, dogecoin has surged dramatically, reaching an intraday high of $0.48 on November 23. This also marks a significant turnaround for the memecoin, which has been consolidating around $0.4 since November 14.

It emphasizes the importance of this breakout and points out that decisive moves above the bullish flag pattern are the key catalysts. This technical breakthrough could propel dogecoin's price to $0.82 - nearly a 90% increase from current levels.

If this prediction holds, dogecoin's rise could redefine market sentiment and strengthen its call outlook.

Factors driving the outlook for DOGE.

Interestingly, whale activity and improved market sentiment seem to enhance the chances of dogecoin maintaining a bullish trajectory.

On-chain data shows that large holders or 'whales' have been actively accumulating, having purchased over 0.55 billion DOGE worth approximately 0.2145 billion USD in the past week.

Additionally, dogecoin's breakthrough has reignited optimism, with increased trading volume and positive sentiment further supporting its rise.

If this momentum continues, along with ongoing whale activity, dogecoin could break through key psychological levels and surge towards Martinez's target of 0.82 USD.

However, profit-taking and external market dynamics remain major risks to watch in the coming weeks.

Furthermore, the average directional index (ADX) has been steadily rising. The ADX is a technical analysis tool that helps traders assess the strength of a trend, whether bullish or bearish.

When the ADX exceeds 25, it indicates strong directional momentum. Conversely, readings below 25 suggest a weak trend. On dogecoin's daily chart, the ADX has surged to 68.00, indicating a clear upward trend. As the token rises, this suggests that dogecoin's price may continue to increase.

The leverage demand for dogecoin and the impact of Elon Musk.

To assess whether the recent surge in dogecoin open interest signals similar risks, it is crucial to examine the funding rates of perpetual contracts. In the derivatives market, long (buyers) and short (sellers) positions are continuously matched, but leverage demand fluctuates. A positive funding rate indicates that buyers are compensating sellers to maintain their positions.

Currently, the monthly cost of holding a leveraged long position in dogecoin is about 2%, within a neutral range of 0.5% to 2.1%. The brief spike to 7.5% on November 23 does not represent typical leverage costs since the rate resets every eight hours. Unlike some previous dogecoin price surges, this recent trend is primarily driven by spot market activity.

It remains uncertain whether the increase in leverage demand for dogecoin positions aligns with the significant growth of so-called "dinosaur coins," a term used by some analysts to describe the value surges of altcoins that were prevalent before 2018.

For example, if the price of dogecoin surges is mainly driven by Musk's frequent posts about the plans of newly elected Trump, it could be imagined that dogecoin may decouple from other altcoins. The sector is co-led by Musk and Ramaswamy aiming to improve efficiency.

Given dogecoin's history, it is an interesting community-driven project, unlike the "dinosaur coins" that aim to revolutionize the world through blockchain technology. The widespread popularity of its Shiba Inu mascot may drive dogecoin's price to rise independently of other cryptos.

Regarding the significant increase in dogecoin open interest, as long as leverage remains balanced, there is no need to worry about collective liquidations of traders.

DOGE price prediction: $1 is still feasible.

Further examination of the daily chart shows that dogecoin's price encountered resistance at $0.43. This decline is one of the reasons the crypto failed to rebound to $0.50. It is worth mentioning that the decline in trading volume makes it difficult for the upward trend to continue.

Meanwhile, the bulls seem to be defending the $0.36 area. If this continues, the value of DOGE could rise to $0.48. In a highly bullish scenario, the meme coin could rebound to the $1 level.

However, if DOGE whales decide to continue selling, this scenario may not happen. Instead, the token may drop to $0.32.

In short, dogecoin is up 25%, breaking through its consolidation pattern, and it is expected that it could soar to $0.82, while renewed investor interest in dogecoin has sparked hopes of a 90% rise after the key breakout.