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. While some assets have experienced small gains, Dogecoin (DOGE) has stolen the spotlight, making notable moves both in price and trading volume. After seeing a dramatic increase in its 24-hour trading volume, Dogecoin has garnered attention from traders eager to figure out what might come next for the coin’s price.

On Wednesday, Dogecoin managed a solid 3.94% price increase in just 24 hours, bringing it up to a value of $0.1727 per coin. This recovery came after a brief period of decline earlier this week when Dogecoin saw a dip to $0.164. The move back into positive territory has fueled a renewed interest in 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 has been its trading volume, which surged to 4.42 billion DOGE (approximately $766 million). This represents a significant 15% increase in the past 24 hours alone, signaling 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 maintain its momentum, the increase in trading volume suggests that there is growing interest in the coin. For many traders, this surge could be an indication of a broader rally or at least a chance for short-term gains.

What Led to Dogecoin’s Price Rebound?

On May 6, Dogecoin experienced a notable drop, reaching 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 quick and impressive, as Dogecoin managed to push back above a key technical level — the 50-day simple moving average (SMA) — which is considered a vital support level by many technical analysts.

The recovery suggests that buyers are stepping in to support Dogecoin’s price at this level, preventing further declines. However, while Dogecoin has managed to bounce back above this moving average, it has not yet initiated a significant rally, and there are still questions 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) currently sits near the midpoint, suggesting that the coin could continue to trade 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 significant gains nor experiencing deep declines.

However, should the price rise above the 50-day SMA, bullish traders may look to push Dogecoin towards the $0.21 level. If Dogecoin is able to surpass this resistance point, there’s potential for the coin to rally further, possibly reaching the $0.2644 mark, which is aligned with the 200-day SMA.

On the flip side, if the price falls back below the 50-day SMA, sellers could gain control, pushing the price towards stronger support at $0.14. Given the current market conditions, Dogecoin’s short-term price action could remain volatile, with traders keenly watching 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 traction as an alternative to Bitcoin and Ethereum, especially due to its low transaction fees and faster block times. While it is unlikely that Dogecoin will ever replace Bitcoin or Ethereum as the dominant cryptocurrency, it does offer certain advantages for users and traders looking for speed and affordability.

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

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

Conclusion: What’s Next for Dogecoin?

At the time of writing, Dogecoin’s price remains 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 increases, though significant challenges remain.

While the broader cryptocurrency market awaits the Federal Reserve’s interest rate decision, Dogecoin’s short-term trajectory may depend on broader market sentiment. If the market maintains an optimistic outlook, Dogecoin could continue to see upward movement. However, if selling pressure increases or broader macroeconomic concerns take hold, Dogecoin’s price could face further downward pressure.

For now, Dogecoin’s future remains uncertain, but its recent price action and increased trading volume are signals that investors are still closely watching the coin. As always, potential investors are advised to conduct thorough research and assess the risks involved before making any financial decisions.